U.S. economic activity has declined over the past six weeks as higher tariff rates and elevated uncertainty have placed upward pressure on costs and prices, according to a Federal Reserve report Wednesday.
In its periodic "Beige Book" summary of conditions, the central bank noted that "the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report" released April 23.
The report said half of the 12 Federal Reserve districts reported slight to moderate declines in activity, three reported no change, and three reported slight growth over the past six weeks.
Manufacturing activity continued to decline modestly as new orders and import demand fell sharply, it said.
Residential real estate sales were little changed, and most district reports on new home construction indicate flat or slowing construction activity.
The Beige Book reported that labor demand weakened across all districts, as evidenced by reduced working hours, increased overtime, hiring pauses, and plans for layoffs. U.S. prices have been on the rise at a moderate pace since late April, with widespread reports indicating that customers expect costs and prices to rise at a faster rate in the future, according to the document.
The Trump administration's tariff increases have become a key factor in pushing up costs, and some companies plan to raise prices in the next three months to pass on the cost pressure.
The Beige Book is a Federal Reserve System publication on current economic conditions across the 12 Federal Reserve districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from each district's sources. Reports are published eight times per year.
Outlook for US economy remains slightly pessimistic: Fed report
Outlook for US economy remains slightly pessimistic: Fed report
Outlook for US economy remains slightly pessimistic: Fed report
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
