Saturday, June 28, 2025

Election Uncertainty Stalls U.S. Economy: What You Need to Know!

Newsis

A report revealed that economic activity in the United States has effectively stagnated over the past month, just two weeks before the presidential election. Local businesses are notably delaying investments amid increasing uncertainty related to the election.

On Wednesday, the Federal Reserve published its Beige Book report via its website. The Beige Book, which is issued eight times a year, aggregates economic assessments of regions overseen by the 12 Federal Reserve Banks. With the previous report released on September 4, this seventh report of the year, prepared by the Federal Reserve Bank of New York, incorporates survey data conducted up until October 11.

The report indicates that three of the 12 Federal Reserve Banks—Dallas, Chicago, and Richmond—reported slight increases in economic activity. In contrast, Minneapolis, Atlanta, and Philadelphia noted declines. The remaining six banks reported little to no changes in economic activity.

In the report, the Fed stated, “Economic activity has remained largely unchanged across almost all regions since early September,” adding, “Manufacturing activity has slowed in most areas.” It also remarked, “Consumer activity is mixed,” highlighting that “some regions experienced an increase in consumers opting for more affordable purchases.” In the real estate sector, while the housing market shows signs of recovery, the commercial real estate market remains stagnant. The port strike on the East Coast from October 1-3 did not have a significant economic impact, and the Atlanta Fed confirmed damages from last month’s hurricane that struck the southeastern United States.

During the survey period, more than half of the Federal Reserve Banks reported slight increases in employment. Wage growth and inflation rates have remained moderate across most regions. The San Francisco Federal Reserve Bank noted that some employers have started hiring for positions that have been on hold for the past year.

The report referenced the upcoming November presidential election 15 times, indicating that election uncertainty is causing delays in consumer purchases and business investment decisions. The New York Federal Reserve Bank reported that businesses are hesitant to make hiring decisions due to the uncertainties related to the election.

Hot this week

Dow Dips, Nasdaq Gains as Wall Street Awaits Fed’s Next Move

The New York stock market closed mixed, with Nvidia hitting a record high while Tesla faced declining sales in Europe.

Nvidia Stock Pops Past $150, Beating Microsoft in Market Value

Nvidia's stock rose to 152.36 USD amid concerns over export restrictions to China, surpassing Microsoft’s market cap.

Nvidia Soars Despite CEO Share Sale, Tesla Tanks on Robotaxi Trouble

The New York stock market rises as Dow surpasses 43,000, Nvidia gains despite CEO stock sale, while Tesla and defense stocks decline.

Gold Prices Plunge as Iran and Israel Call for Ceasefire

Gold prices fell as geopolitical tensions eased between Israel and Iran, with analysts predicting potential future increases.

Oil Drops 4% on Israel-Iran Peace Talks and Supply Optimism

International oil prices dropped over 4% due to eased supply concerns and a ceasefire announcement between Israel and Iran.

Topics

Dow Dips, Nasdaq Gains as Wall Street Awaits Fed’s Next Move

The New York stock market closed mixed, with Nvidia hitting a record high while Tesla faced declining sales in Europe.

Nvidia Stock Pops Past $150, Beating Microsoft in Market Value

Nvidia's stock rose to 152.36 USD amid concerns over export restrictions to China, surpassing Microsoft’s market cap.

Nvidia Soars Despite CEO Share Sale, Tesla Tanks on Robotaxi Trouble

The New York stock market rises as Dow surpasses 43,000, Nvidia gains despite CEO stock sale, while Tesla and defense stocks decline.

Gold Prices Plunge as Iran and Israel Call for Ceasefire

Gold prices fell as geopolitical tensions eased between Israel and Iran, with analysts predicting potential future increases.

Oil Drops 4% on Israel-Iran Peace Talks and Supply Optimism

International oil prices dropped over 4% due to eased supply concerns and a ceasefire announcement between Israel and Iran.

TSMC Delays Kumamoto Factory Amid Traffic Concerns and Market Uncertainty

TSMC delays its second factory in Kumamoto, citing traffic issues, but market demand uncertainties may be the real reason behind it.

From Tensions to Tumbles: Oil Prices Sink While Iran Avoids Escalation

Oil prices dropped over 7% following Iran's airstrikes on U.S. bases, signaling a reluctance to escalate conflict despite tensions.

Volatility Index Falls Below 20 as U.S.–Iran Show Signs of De-Escalation

U.S. stock markets rose as tensions eased between the U.S. and Iran, while Tesla shares surged following its robotaxi launch.

Related Articles