Washington, (EFE) .- The Federal Reserve (FED) found an increase in prices in its 12 districts due to tariffs and pointed out that most companies plan to pass additional consumer costs.
In his book Beige, publication in which he analyzes the economic conditions of the 12 districts in which the Central Bank divides the country, stressed that prices increased in all: in six in a modest and moderate way in the rest, similar to the previous report.
“Most districts indicated that companies provided for a considerable increase in input costs as a result of tariffs. Many companies have already received notifications from their suppliers about an increase in costs,” said the agency.
The companies, he added, “reported having applied tariff surcharges or shortened price horizons to compensate for the uncertainty of commercial policy.”
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“The majority expected to transfer additional customers costs. However, there were reports on a compression of margins due to the increase in costs, since the demand remained weak in some sectors, especially in consumer -oriented companies,” he said.
His previous report was published on March 5, before President Donald Trump intensified the tariff offensive against his commercial partners, on which a 90 -day partial truce is now in force to negotiate new pacts.
“Economic activity was practically unchanged since the last time, but the uncertainty about international commercial policy was widespread in all reports,” the report said.
Five districts experienced a slight growth, “three noticed that the activity was practically unchanged and the remaining four reported declines between slight and moderate,” he said his summary.
According to their conclusions, the perspectives in several districts worsened considerably as economic uncertainty increased, particularly around tariffs.
“However, in the majority sales between moderate and high vehicles and some non -durable goods were recorded, generally attributed to the rush to buy before the increases of prices related to the tariffs,” he added.
Both leisure and business trips decreased in general, and in several districts a decrease in international visitors was observed. In turn, housing sales increased slightly and many districts continued to observe low levels of stocks.
Trump presumed on the other hand on Wednesday that the country is earning “a lot of money” with the tariffs and that the partners are approaching their administration to reach agreements.
“Everyone wants to participate, even those who have scammed us for many years, like China. But it is not just about China, but also the European Union,” he said.
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The Republican leader said that this will allow them to “substantially reduce taxes” and be proud of themselves.
“We will not be the laughing of which practically all the countries of the world were used,” he said in the White House.
Trump has been for the beginning of his second term on January 20 by pressing the president of the Fed, Jerome Powell, to lower the rates when considering that it is the “perfect” time.
He has even threatened with the dismissal of the central banker for not acting in his opinion quick enough, but on Tuesday he said and said he has no intention of doing so.
The rates are currently in a range of between 4.25 and 4.5% and the next meeting of the Federal Open Market Committee to evaluate possible increases or reductions will take place on May 6 and 7.
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