Fed: Energy price hikes ripple through supply chain

The Federal Reserve reported Wednesday that rising energy costs, especially diesel, are being passed through the entire supply chain, though consumer-facing businesses face difficulty transferring these costs and are reducing margins. The Fed noted consumers continue to resist price increases. The Fed's "Beige Book" survey found companies typically combine partial price hikes with offer adjustments to lower costs. Some regions cited persistent uncertainty over energy and tariffs, anticipating further price increases. This follows a Labor Department report showing September inflation at 3.7% year-over-year, driven by higher energy prices. Despite the uncertainty, businesses maintain a positive economic outlook, expecting slight growth. Employment remains largely unchanged, while wages rise moderately with increasing pressure for inflation-adjusted increases. The Fed's next policy meeting is scheduled for October 27-28, with markets currently pricing around 60% odds of holding rates at 3.75%-4%.