Fed Survey: Tariffs Continue to Plague Businesses, Expect 4% Inflation Next Year

BlockBeats News, December 17th, a survey conducted jointly by the Richmond and Atlanta Feds and Duke University's Fuqua School of Business showed that corporate financial executives still consider tariffs a top concern, with an average expectation of about a 4% increase in prices next year. This result could exacerbate the Federal Reserve's concerns about current price pressures—pressures that could prevent it from quickly hitting its 2% inflation target.

The survey, conducted between November 11th and December 1st, interviewed 548 chief financial officers. The results showed that respondents were less confident in their own companies and the overall U.S. economy. The U.S. overall economic optimism index fell from 62.9 (out of 100) in the third quarter to 60.2, below the recent peak of 66 reached at the end of 2024 after President Trump won re-election.

Overall, respondents expect moderate growth in employment and the economy in 2026, with the median forecast for 1.7% job growth in 2026 (similar to recent surveys) and an estimated economic annual growth rate of about 1.9%. Less than half (40%) of companies said they are hiring for new positions, slightly below the 20% of companies not hiring at all, with about 9% of companies expecting layoffs. (via Jin10)