Beige book of the Fed: Price increases before tariffs could mean problems for inflation

The summary of comments on the current economic conditions of the Federal Reserve (FED), known colloquially as the Beige book, is a compilation of anecdotal information on inflation, employment and general economic conditions within each district of the Bank of the Fed. The Book Beige is collected and published eight times a year, releasing approximately two weeks before each decision on fees of the Fed.

The Beige book is generally considered the least impact of the three ‘books’ distributed by the Fed, however, the Beige book is the only version that is publicly available. Normally a launch without relevance, the March Beige book has an additional weight since the commercial warning of US President Donald Trump are beginning to produce cracks in the US economy.

Outstanding aspects

The general expectations for economic activity in the coming months were slightly optimistic.

Prices increased moderately in most districts, but several districts reported an increase in the rhythm of increase in relation to the previous report period.

The economic activity of the United States increased slightly since mid -January.

Employment was slightly higher in general terms, with mixed results.

Salaries increased at a modest to moderate rhythm, prices rose moderately.

The contacts in most districts expected possible tariffs on supplies to lead them to increase prices, with isolated reports from companies that increased prices preventively.