{"id":1053104,"date":"2025-06-04T18:37:41","date_gmt":"2025-06-04T22:37:41","guid":{"rendered":"https:\/\/democrats.org\/?p=1053104"},"modified":"2025-06-04T18:37:42","modified_gmt":"2025-06-04T22:37:42","slug":"new-fed-report-u-s-economy-contracts-consumers-brace-for-higher-prices","status":"publish","type":"post","link":"https:\/\/democrats.org\/news\/new-fed-report-u-s-economy-contracts-consumers-brace-for-higher-prices\/","title":{"rendered":"NEW FED REPORT: U.S. Economy Contracts, Consumers Brace for Higher Prices\u00a0"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"449\" width=\"1024\" src=\"https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png?w=1024\" alt=\"\" class=\"wp-image-1050776\" srcset=\"https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png 1101w, https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png?resize=300,132 300w, https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png?resize=768,337 768w, https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png?resize=1024,449 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Today, the Federal Reserve confirmed what the American people are already feeling when they buy groceries or pay their bills: Donald Trump lied when he said he would bring down costs on Day One. Because of Trump\u2019s chaotic economic agenda, working families and small businesses are bracing for even higher prices, all while his congressional lackeys push forward a budget to rip away health care and food assistance. As Trump prioritizes handouts for billionaires, it\u2019s hardworking Americans who are paying the price.<\/p>\n\n\n\n<p><strong>NEW REPORT: The Federal Reserve \u201cBeige Book\u201d report confirms the American economy is suffering as prices rise under Donald Trump\u2019s chaotic economic agenda.&nbsp;<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/06\/04\/fed-beige-book-economic-report-cites-declining-growth-rising-prices-and-slow-hiring.html\">CNBC<\/a>: <strong>\u201cFed \u2018Beige Book\u2019 economic report cites declining growth, rising prices and slow hiring\u201d<\/strong>&nbsp;<\/p>\n\n\n\n<p><strong>\u201cThe U.S. economy contracted over the past six weeks as hiring slowed and consumers and businesses worried about tariff-related price increases<\/strong>, according to a Federal Reserve report Wednesday. \u2026&nbsp;<\/p>\n\n\n\n<p><strong>\u201c\u2018All Districts reported elevated levels of economic and policy uncertainty<\/strong>, which have led to hesitancy and a cautious approach to business and household decisions,\u2019 the report added. \u2026&nbsp;<\/p>\n\n\n\n<p><strong>\u201c\u2018There were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward. <\/strong>A few Districts described these expected cost increases as strong, significant, or substantial,\u2019<strong> <\/strong>it said. <strong>\u2018All District reports indicated that higher tariff rates were putting upward pressure on costs and prices.\u2019\u201d&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Americans are overwhelmingly rejecting Trump\u2019s failed economic agenda as Democrats and Republicans agree Trump\u2019s agenda is increasing costs.&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Only <a href=\"https:\/\/harvardharrispoll.com\/wp-content\/uploads\/2025\/05\/HHP_May2025_KeyResults.pdf\">39%<\/a> of Americans say the economy is on the right track, and just <a href=\"https:\/\/apnorc.org\/wp-content\/uploads\/2025\/05\/may-2025-Higher-Ed-topline.pdf\">36%<\/a> approve of Trump\u2019s handling of the economy\u00a0<\/li>\n\n\n\n<li><a href=\"https:\/\/navigatorresearch.org\/americans-continue-to-disapprove-of-trumps-handling-of-the-economy\/?emci=60d9ec03-f43f-f011-a5f1-6045bda9d96b&amp;emdi=21692f74-5f40-f011-a5f1-6045bda9d96b&amp;ceid=1591425\">68%<\/a> of Americans \u2014 including <a href=\"https:\/\/navigatorresearch.org\/americans-continue-to-disapprove-of-trumps-handling-of-the-economy\/?emci=60d9ec03-f43f-f011-a5f1-6045bda9d96b&amp;emdi=21692f74-5f40-f011-a5f1-6045bda9d96b&amp;ceid=1591425\">48%<\/a> of Republicans \u2014 say that costs are going up, while <a href=\"https:\/\/law.marquette.edu\/poll\/2025\/05\/21\/new-marquette-law-school-poll-national-survey-finds-overall-approval-of-trump-immigration-policies-disapproval-of-handling-of-job-on-tariffs-and-the-economy\/\">63%<\/a> expect Trump to make inflation worse over the next year<\/li>\n\n\n\n<li><a href=\"https:\/\/www.cbsnews.com\/news\/economic-views-summer-winter-opinion-poll\/\">76%<\/a> of Americans say their income is not keeping up with inflation<\/li>\n\n\n\n<li>Nearly <a href=\"https:\/\/navigatorresearch.org\/americans-continue-to-disapprove-of-trumps-handling-of-the-economy\/?emci=60d9ec03-f43f-f011-a5f1-6045bda9d96b&amp;emdi=21692f74-5f40-f011-a5f1-6045bda9d96b&amp;ceid=1591425\">half<\/a> of Americans say they are avoiding going to restaurants, movies, and other recreational activities \u2014 while cutting back on necessities like groceries\u00a0<\/li>\n\n\n\n<li>Trump\u2019s approval rating on inflation remains deeply underwater at <a href=\"https:\/\/www.natesilver.net\/p\/trump-approval-ratings-nate-silver-bulletin?open=false#%C2%A7the-polls-what-do-the-surveys-say\">-17.1%<\/a><\/li>\n\n\n\n<li>Only <a href=\"https:\/\/archive.ph\/Y9hpa#selection-1331.105-1331.254\">33%<\/a> approve of Trump\u2019s handling of the cost of living<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Today, the Federal Reserve confirmed what the American people are already feeling when they buy groceries or pay their bills: Donald Trump lied when he said he would bring down costs on Day One. Because of Trump\u2019s chaotic economic agenda, working families and small businesses are bracing for even higher prices, all while his congressional [&hellip;]<\/p>\n","protected":false},"author":292,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1053104","post","type-post","status-publish","format-standard","hentry","category-press-release"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NEW FED REPORT: U.S. Economy Contracts, Consumers Brace for Higher Prices\u00a0 - Democrats<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/democrats.org\/news\/new-fed-report-u-s-economy-contracts-consumers-brace-for-higher-prices\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:site_name\" content=\"Democrats\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-04T22:37:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-04T22:37:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png?w=1024\" \/>\n<meta name=\"author\" content=\"Adrianna Tomasello\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Adrianna Tomasello\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/democrats.org\/news\/new-fed-report-u-s-economy-contracts-consumers-brace-for-higher-prices\/\",\"url\":\"https:\/\/democrats.org\/news\/new-fed-report-u-s-economy-contracts-consumers-brace-for-higher-prices\/\",\"name\":\"NEW FED REPORT: U.S. Economy Contracts, Consumers Brace for Higher Prices\u00a0 - 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