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Dow Jones Snaps Win Streak as Fed Beige Book Flags Weak Growth, Rising Costs

  • The Federal Reserve's Beige Book released on June 5, 2025, reported a slight decline in U.S. Economic activity across most districts amid rising costs and cautious hiring.
  • The decline followed ongoing tariff tensions and financial market volatility that increased uncertainty and led firms to slow capital expenditures and shift production domestically.
  • Manufacturing contracted slightly, labor markets remained stable but hiring urgency declined, and many firms noted improved labor availability and modest wage growth despite some pay freezes.
  • The report indicated that prices increased gradually overall, with many businesses anticipating more rapid cost growth due to tariffs, leading some to raise their prices, implement additional charges, or absorb expenses to maintain profit margins.
  • The slight economic cooling and elevated uncertainty suggest continued inflation pressures but also raise the possibility of the Fed pausing or reversing rate hikes if the slowdown intensifies.
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Bias Distribution

  • 33% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
33% Right
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NBC Washington broke the news in Washington, United States on Wednesday, June 4, 2025.
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