Fed survey shows price pressures intensifying as fuel costs rise
TLT•The Fed’s Beige Book reported intensifying price pressures in parts of the country, with 21 references to high diesel costs, and said five districts reported firms reducing staffing by delaying hiring or not replacing departing workers.
1. Price pressures rise
Three Fed districts described price growth as robust and eight as moderate, with three of those eight saying it was intensifying. The report cited 21 references to high diesel fuel costs, up from two in the previous Beige Book, and noted continued price pressure from other commodities, tariffs and insurance.
2. Hiring remains subdued
The report described a labor market with few mass layoffs but limited hiring. Five districts said firms had reduced staffing by not replacing departing workers or delaying hiring; some businesses also reported using AI to raise productivity or manage hiring processes.
3. Housing activity weakens
The report said rising mortgage rates slowed housing activity and kept some homeowners from selling. The average 30-year fixed mortgage rate reached 7.5% last week, its highest level in nearly three years, the Mortgage Bankers Association said.
