A survey of businesspeople by the Federal Reserve has revealed a growing concern among corporate leaders about investing in and hiring employees, citing uncertainty over the economy due to trade tensions. The Beige Book, an eight-times-a-year report on economic conditions, found that while current data suggests stability, business leaders are taking a cautious approach to future planning.
According to the report, firms are prioritizing mitigating tariff-related risks over investments in innovation and efficiency. Contacts with the Kansas City Fed noted that businesses are pausing or slowing hiring until there is more clarity on economic conditions. Scattered reports also suggest companies are preparing for potential layoffs.
The use of the word “uncertainty” has increased significantly, from 45 times in the early March edition to 80 times in the latest report. This rise reflects businesspeople’s growing unease about what lies ahead. Notably, the tourism industry is experiencing challenges due to negative reactions to U.S. tariff policies, with travel from Canada and potentially Europe and China expected to decline.
The Beige Book provides valuable insights into the shifting perceptions of corporate leaders, offering a glimpse into potential changes in the economy that may not yet be reflected in data.
Source: https://www.axios.com/2025/04/24/jobs-investing-corporate-leaders