What Businesses Are Saying

Businesses sounded more upbeat in the lead-up to the March FOMC meeting but still hesitated to hire and raise prices. New global uncertainty could temper this optimism going forward.

From the end of 2025 through mid-January, businesses said they are increasingly confident but are still hesitant to make moves; the low-hire, low-fire equilibrium seems likely to continue.

Since the last FOMC cycle, businesses said growth has been solid, but narrow; the low-hire, low-fire equilibrium continues.

Conversations with businesses since the last FOMC cycle did not suggest any big shifts in the economy; economic conditions remained stable.

This post shares sensing insights from business contacts in recent weeks. Overall, businesses said activity increased somewhat while expectations remained mixed, labor availability improved, and more cost passthrough was expected.