Slower hiring, rising prices, wary consumers: Fed's beige book points to sluggish economy [View all]

Source: Market Watch via MSN

Businesses were “hesitant to hire” because of weaker sales and uncertainty tied to U.S. trade wars, the Federal Reserve said, but tariffs have only exacerbated inflation by a “moderate or modest amount” so far.

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While the labor market was weaker, the report showed, it was also fairly stable. Businesses focused on using artificial intelligence to take the place of some jobs and reduced headcount by not filling open positions after people quit or retired.

A decline in immigrant labor also contributed to lackluster hiring, the beige book reported. The administration of President Donald Trump has made deporting unauthorized immigrants a point of emphasis.

Inflation rose over the summer, and prices are expected to continue to rise, but the beige book characterized the increase as “moderate to modest.”

Read more: https://www.msn.com/en-us/money/other/slower-hiring-rising-prices-wary-consumers-fed-s-beige-book-points-to-sluggish-economy/ar-AA1LOtlc