Sep 5, 2019
What happens when retailers pass along tariff costs to customers?
Sometimes it works, sometimes it doesn’t.
The Federal Reserve releases the Beige Book several times a year. Above, the Fed building in Washington, D.C., in 2008.
Karen Bleier/AFP/Getty Images
Take a look inside the Federal Reserve’s latest Beige Book — which came out yesterday — and you can see the results of a real-life behavioral economics experiment. The question: Can retailers get away with raising prices for their products now that the Trump tariffs are making things more expensive?
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