Fed Says Growth Still Modest or Moderate While Optimism Ebbs
- Labor market remains hot with firms struggling to find workers
- Tariffs blamed for rising input costs and price increases
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Optimism over prospects for growth at U.S. firms has begun to fade even as a majority of Federal Reserve districts continued to report modest to moderate economic expansion in recent weeks.
“Most districts reported that firms remained positive,” according to a Federal Reserve report released Wednesday. “However, optimism has waned in some as contacts cited increased uncertainty from impacts of tariffs, rising interest rates and labor market constraints.”