Core Insights - The Federal Reserve's Beige Book indicates that recent economic activity in the U.S. has remained relatively unchanged, with overall employment levels stable [1] - Consumer spending has slightly declined, while prices continue to rise, with several Federal Reserve districts reporting an acceleration in input cost increases [1] - The report highlights that cost increases driven by tariffs have been reported across many districts, but the extent to which these higher costs are passed on to final prices varies [1] Economic Activity - Economic activity in the U.S. has not shown significant changes in recent weeks [1] - Employment levels are reported to be stable overall [1] Consumer Spending - There has been a slight decline in overall consumer spending [1] Price Trends - Prices are continuing to rise, with several districts noting an increase in input costs [1] - The transmission of higher input costs to final prices varies across different regions [1] Tariff Impact - Input cost increases attributed to tariffs have been reported in many Federal Reserve districts [1]

Core Viewpoint - The Federal Reserve's Collins suggests that tariffs may lead to increased inflation, reduced economic growth, and lower employment levels [1] Group 1 - Tariffs are likely to push inflation higher, impacting consumer prices and overall economic stability [1] - The potential economic slowdown due to tariffs could result in decreased job opportunities and lower employment rates [1] - Collins emphasizes the negative implications of tariffs on the broader economy, highlighting the interconnectedness of trade policies and economic performance [1]