Catarina Saraiva, a Bloomberg reporter, discussed the Federal Reserve’s recent Beige Book. She noted a growing cautiousness among U.S. businesses and consumers. The Beige Book showed minor dips in activity with the labor market stabilizing.
Uncertainty due to trade tensions and tariffs is influencing decisions.Businesses and consumers are watching to see how the tariff conflict unfolds. Tariffs were mentioned 122 times in the report, indicating their notable impact on the economy.
Saraiva pointed out that despite concerns, consumer spending remains robust. She attributed this to the strong labor market. Retail sales saw a slight rise, though big-ticket purchases dropped. Inflation is a concern as it could lead to the Fed losing price control, but most market-based measures are still stable.
- Saraiva discussed michelle Bowman, Trump’s Fed pick, known for her lighter regulation stance.
- Bowman supports self-reliant reviews, like the one on the Silicon Valley Bank collapse.
- She could replace Jerome Powell as Fed Chair, having proven her dedication as a policymaker.
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