U.S. firms are apprehensive about passing higher tariff-related costs on to their customers, according to the latest Federal Reserve report, released on Oct. 15.
The October Beige Book—a periodic summary of economic conditions across the central bank’s 12 districts—found that businesses have been facing higher input costs at a faster pace due to rising import costs. Firms are also experiencing increasing input pressures from services, including health care, insurance, and technology solutions.
But many companies have refrained from putting pressure on consumers’ wallets.
“Some firms facing tariff-induced cost pressures kept their selling prices largely unchanged to preserve market share and in response to pushback from price-sensitive clients,” the report reads….