The official website of Aohui: The Federal Reserve Beige Book exposes the impact of Trump's tariffs: soaring prices, layoffs are coming

The Beige Book report released by the Federal Reserve on Wednesday (April 23) sent a bombshell signal that the Trump administration's tariff increases are causing a chain reaction across the United States, with prices rising rapidly in many places and economic activity slowing significantly. The latest report, based on a survey of 12 regional Fed banks, shows that businesses and households are struggling to cope with the chaos caused by the sudden change in trade policy.AUSFOREX official websiteEconomic uncertainty has surged to twice as high as in the previous report (mentioned 80 times), with 107 directly related tariff impacts.

Industries sound the alarm, stagflation looms over

Consumer buying and price chaos

The report captured the "rush to buy" before the tariffs took effect, with people rushing to buy goods such as imported cars.AohuiAUSFOREXThe official website, but it was accompanied by corporate pricing chaos - machinery makers in the Chicago Federal Reserve were forced to adjust prices daily, Richmond Fed coffee roasters suffered "historic cost increases", and sheet metal makers were caught in a shortage of orders due to steel tariffs.

Investment freeze and layoffs undercurrent

Paralysis in investment decision-making has occurred in many regions: military equipment manufacturers have suspended investment because they say the environment is "too chaotic"; the construction industry expects demand to plummet due to tariff costs. To make matters worse, the Federal Reserve Bank of Atlanta and St. Louis have both reported that companies are planning to lay off employees, and the Federal Reserve Bank of San Francisco has confirmed that there have been actual layoffs in various industries. The signs of stagflation "rising wages and prices" are beginning to appear.

Regional economic collective stall

Cleveland: Demand may "fall off a cliff" after a brief boom in construction.

Richmond: Businesses face "epic cost pressures" and order uncertainty.

SAN FRANCISCO: Price pressures on imported goods are spreading across the industry.

Summary: The Federal Reserve presses the pause button, interest rate cuts are expected to heat up

Faced with this "tariff shock wave", the Federal Reserve chose to wait and see. Although interest rates are likely to remain unchanged at the May meeting, the market has already bet on a rate cut in June. The warning of "a significantly deteriorating outlook" in the Beige Book and Powell's emphasis on the report suggest that the policy turn may be earlier than expected. When the number of mentions of uncertainty in the report soared to 80 times, the speeding train of the US economy may be forced to pull the handbrake.