U.S. Fed Beige Book "U.S. Manufacturers Stock Up Over Trump Tariff Concerns"

U.S. manufacturers are stockpiling inventories in preparation for the next Donald Trump administration's tariff notice, the U.S. Federal Reserve said in its Beige Book, an economic trends report.

"Manufacturing activity in the U.S. fell slightly late last year, and in many regions manufacturers are stockpiling inventory in anticipation of higher tariff rates," the Fed said in a report.

He also said, "Although more business operators were optimistic about this year's outlook than pessimistic, some regions were concerned that immigration policies and tariff bombs could adversely affect the economy."

The Beige Book is an economic trends report released two weeks before the Federal Open Market Committee meeting, or FOMC, where 12 U.S. Federal Reserve banks usually contact banks, businesses and experts to determine monetary policy by region.

In the meantime, ahead of the FOMC meeting on the 28th and 29th, senior Fed officials gave a positive assessment in their public speeches that inflation would make progress.

"The process of slowing inflation is still ongoing," said John Williams, president of the New York Fed, but "it may take more time to reach the 2% price target reliably."

Richmond Fed Governor Thomas Barkin also said last month that "inflation continues to slow towards target levels, as it has been."

"The trend of improving inflation continues," said Austin Goolsbee, president of the Federal Reserve Bank of Chicago. "We are optimistic that growth will continue this year and the economy will make a soft landing."