Survey Reveals Tariffs Remain Top Concern for CFOs

According to Odaily, a survey conducted by the Richmond and Atlanta Federal Reserves in collaboration with Duke University's Fuqua School of Business indicates that corporate financial executives continue to view tariffs as a primary concern, with an average expectation of a 4% price increase next year. This finding may heighten the Federal Reserve's worries about current price pressures, potentially hindering its ability to achieve a 2% inflation target soon. The survey, conducted from November 11 to December 1, involved 548 chief financial officers. Results show a decline in confidence among respondents regarding their own companies and the overall U.S. economy. The optimism index for the U.S. economy dropped from 62.9 in the third quarter to 60.2, below the recent high of 66 reached at the end of 2024 after U.S. President Donald Trump secured his current term. Overall, respondents anticipate moderate growth in employment and the economy by 2026, with a median expectation of 1.7% employment growth and an economic growth rate of approximately 1.9% annually. Less than half (40%) of companies are hiring for new positions, slightly below 20% are not hiring at all, and about 9% expect to lay off employees.