US economic activity steady in recent weeks, but uncertainty pervasive, Fed says

The Federal Reserve noted that U.S. Economic activity remains stable with little change in employment since March. However, rising uncertainty due to tariffs has impacted various districts.

Fed Chair Jerome Powell emphasized the ‘Beige Book’ report, crucial for assessing the economic climate amid escalating trade tensions. Policymakers are cautious in adjusting interest rates due to unexpected outcomes from tariffs.

Household and business confidence has weakened alongside expectations of inflation increases. Financial markets predict that the Fed may initiate rate cuts in June, following the next policy meeting in early May.