April’s Beige Book Reveals Trump’s War in Iran Is Devastating Economy At Home

The Federal Reserve released its April 2026 Beige Book, which provides economic commentary from each of the 12 Federal Reserve Districts. In this month’s report, the first since the start of Trump’s war in Iran, regional contacts reported painful price increases tied directly to the conflict, sustained consumer strain, and instability in the labor market.Groundwork’s Chief of Policy and Advocacy, Alex Jacquez, offered his reaction: “The Fed last week confirmed what working families already know to be true. Trump’s illegal war in Iran is driving up prices and squeezing wallets across the country, while businesses struggle to keep up with market instability. The Beige Book’s message couldn’t be clearer – as long as the president continues on this destructive path, workers and consumers will pay the price.” Background:The Federal Reserve’s Beige Book contains critical economic indicators, including the risk of recession. It is compiled with firsthand reports from contacts at businesses, banks, and community organizations across each of the 12 Federal Reserve Districts to report regional economic conditions. April’s Beige Book reveals the following.Trump’s war in Iran is directly responsible for driving up prices across the economy. Increased input costs for producers and tightened oil supply ballooned prices on everything from fertilizer to plastic products. Volunteers may have to cut back on delivering meals to homebound seniors due to exorbitant gas prices, according to a contact in Dallas.Business leaders in Atlanta admitted that should the war in Iran continue, they’ll be forced to reevaluate their pricing.Contacts at Richmond ports forecast that the longer Trump pursues the war in Iran, the greater impact the conflict will have across supply chains.Businesses are holding off on long-term hiring, instead turning to temporary and contract workers, according to a temporary employment agency in Chicago that has seen a surge in demand amidst the uncertainty, as well as contacts in Cleveland and Boston.A Chicago manufacturer said they have instituted a hiring freeze in anticipation of higher input costs related to the Iran war. Energy costs are hitting everyone, everywhere. Higher freight and shipping costs hit producers and families face budget-shattering utility bills. In Cleveland, contacts reported that their fuel costs are ‘skyrocketing,’ and attributed the spike directly to the closure of the Strait of Hormuz.Atlanta energy contacts anticipate that crude oil prices will remain elevated or increase further into the summer due to infrastructure destruction in the Middle East.In New York, a contact reported that Trump’s war is pushing up utility prices for working and middle class families. Low-income households are struggling while high earners pull away. The K-shaped economy is on display as high earners splurge and working families scrimp. A Kansas City report says that working families’ budgets don’t stand a chance against low wages, tariff fallout, and elevated inflation.Food bank lines are getting longer thanks to price increases at the grocery store and an uncertain economic outlook in the wake of the Trump administration’s attacks on the Supplemental Nutrition Assistance Program, according to contacts in Dallas and Atlanta.In St. Louis, a contact noted that increased overdraft fees reflect that budgets are strained and working families have been forced to make difficult choices to reduce discretionary spending.