Group 1 - U.S. businesses reported increased challenges due to labor shortages and rising import tariffs, leading to a cautious economic outlook [1][3] - The latest Federal Reserve Beige Book indicates a slight improvement in economic activity, but uncertainty remains high, causing businesses to be cautious [1][3] - Multiple industries expect sustained cost pressures, which may lead to faster consumer price increases in the coming months [3][4] Group 2 - Employment has seen slight growth, but many businesses plan to delay major hiring or layoffs until uncertainty decreases [3][6] - Immigration enforcement measures under the Trump administration are impacting various sectors, with labor shortages delaying project completions and affecting service availability [3][4] - The Federal Reserve is closely monitoring the effects of tariffs on inflation and overall economic conditions, with concerns about potential price increases due to higher import tariffs [6][7]