US firms sound alarm over Trump policies

washington — Businesses in some parts of the United States, while generally upbeat, are concerned about the uncertainty surrounding the impending policies of President Donald Trump, the Federal Reserve said.

The Fed’s survey of the economy also showed that labour markets continue to tighten across the country, with many regions finding it harder to fill positions, but price pressures have not yet raised inflation concerns.

“Some respondents expressed concern about policy changes in the new administration and associated uncertainty,” the Boston Fed said in the so-called Beige Book report, which collects views of economists, business contacts and others nationwide in preparation for the March 14-15 monetary policy meeting.

The Federal Reserve Bank of Cleveland noted that “the auto industry is concerned about the possible impacts of a border adjustment tax”.

The Trump administration is looking at a possible tax change that would tax imports but not exports, but the auto industry cautions that “auto parts cross borders

The auto industry is concerned about the possible impact of a border adjustment tax Cleveland Fed

multiple times prior to final assembly”, and such a tax “would likely result in higher sticker prices” for vehicles.

The Federal Reserve Bank of Dallas also noted “increased uncertainty” about coming policy changes especially in the manufacturing sector, while the San Francisco Fed cited concerns about the impact of immigration limits on the agriculture sector, “particularly during harvest season,” which could drive up wage costs.

All 12 Federal Reserve districts reported “modest to moderate” economic growth since the start of the year.

“Businesses were generally optimistic about the near-term outlook but to a somewhat lesser degree than in the prior report,” which was released on January 18, the Beige Book said. —