The U.S. Federal Reserve on Wednesday reported that its contacts at companies across the country were worried that international trade tensions could weigh on business even as economic activity picked up.
The Fed's so-called "Beige Book" report, a compendium of anecdotes on the state of the economy, pointed to numerous cases of businesses citing concern over the Trump administration's trade war with China. The report was prepared with information from business contacts through May 24, meaning it caught none of the uproar in business circles over U.S. President Donald Trump's threat last week to slap new tariffs on all Mexican imports if Mexico doesn't crack down on illegal immigration into America.
"Several contacts indicated a down shift in demand growth if there is a not a resolution to the trade dispute with China, although a few were optimistic that an agreement would be reached and benefit the U.S. long term," according to the latest Beige Book report, which was prepared by the Minneapolis Fed.
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