MNI BRIEF: Fed Districts See Softer Growth, Tariff Uncertainty

U.S. economic activity weakened somewhat in recent weeks while firms report unusually high levels of uncertainty associated with tariffs, the Federal Reserve's Beige Book report said Wednesday.

"Reports across the twelve Federal Reserve Districts indicate that economic activity has declined slightly since the previous report. Half of the Districts reported slight to moderate declines in activity, three Districts reported no change, and three Districts reported slight growth," the report said.  

"All Districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions. Manufacturing activity declined slightly. Consumer spending reports were mixed, with most Districts reporting slight declines or no change; however, some Districts reported increases in spending on items expected to be affected by tariffs." (See MNI POLICY: Fed Cut Impetus Fades Alongside Recession Fears)