Introduction

Inflation fuelled by tariffs, coupled with cautious hiring and spending trends, defines the financial atmosphere of Fall 2025.

Key Insights

• The Fed’s Beige Book cites rising prices linked to tariffs and subdued hiring as key economic pressures.
  
  
• Consumer actions show resilience: spending remains strong, especially among higher-income groups who are saving, investing, and paying down debt.
  
  

Why Consumers Are Feeling the Pinch

• Tariffs are nudging up everyday prices—from groceries to household goods.
  
  
• Despite cautious sentiment, spending persists—highlighting consumer adaptability in the face of rising costs.
  
  

Advisor’s Guide

• Encourage clients to refine budgets, prioritize essentials, and use value-focused strategies like discounts or coupons.
  
  
• Emphasize importance of emergency funds and debt management amid inflation.
  
  
• Stay updated on consumer sentiment to deliver empathetic, data-informed advice.
  
  

Outlook

• Consumer behavior suggests underlying resilience—spending continues even as price pressures mount.
  
  
• Tariffs may continue to shape spending patterns; staying agile with financial guidance is essential.
  
  

Actionable Tips for Consumers

1. Reassess budgets with a focus on needs and value.
   
   
2. Automate incremental savings—even small amounts add up.
   
   
3. Seek high-value deals or bulk purchasing opportunities.
   
   
4. Reduce high-interest debts to fight creeping inflation.
   
   
5. Stay informed and flexible—adjust financial plans as economic conditions evolve.