U.S. Fed sees more firms reducing staff on economic uncertainty

The U.S. Federal Reserve’s Beige Book report said more employers are cutting jobs due to weaker demand and rising uncertainty, while prices have increased in recent weeks. Overall economic activity was mostly unchanged, though consumer spending dipped slightly.

Fed Chair Jerome Powell warned that slower hiring threatens growth, signaling two more rate cuts this year. Inflation pressures remain, partly due to new tariffs from President Donald Trump, which have raised import and service costs.

The Fed noted that uncertainty and AI investments are driving layoffs, while labor shortages persist in agriculture, construction, and manufacturing because of immigration policy changes.

Credit : CGTN