Economic outlook deteriorates in Mountain West
Washington and its neighbors are seeing slower economic growth, more layoffs, and rising costs as the West braces for a downturn, per the latest Federal Reserve's Beige Book report.
Why it matters: The region's long-standing affordability crisis could deepen as inflation lingers, layoffs rise, and housing production slows.
State of play: The San Francisco Fed — which oversees nine Western states, including Washington — reported that economic activity in the region slowed slightly from mid-February through March.
Employment dipped as businesses across industries, including Big Tech, announced layoffs or paused hiring, per the Beige Book.
Retailers saw sluggish sales, especially in discretionary categories like clothing and electronics.
Prices rose modestly, with elevated pressure on imported goods and raw materials like aluminum, steel and electrical components.
Between the lines: Service costs — including insurance, health care and utilities — remained high, even as some hospitality businesses cut prices to attract customers.
Many companies received price hike notices from suppliers tied to new or expected tariff increases.
Additionally some retailers and hospitality providers in southern California and northern Washington "reported a material drop in cross-border tourism with Canada and Mexico," the report stated.
Zoom in: Despite ongoing demand, real estate activity remained muted across the region, according to the report.
Developers paused or scaled back projects due to rising construction costs and elevated financing rates.
Some landlords reported a rise in missed rent payments as tenants struggled with high living costs.
That will likely pose a challenge to Washington and Seattle as they look to boost housing production and office building use.
Context: The Fed publishes the Beige Book eight times a year to give a snapshot of current economic conditions across its 12 districts, providing indicators for what to expect in coming months.
The report is compiled by gathering information from businesses, community organizations and other sources across each district.
What they're saying:"Most contacts reported that they plan to pass increased input costs on to customers, but some expected to absorb cost increases to preserve market share," the Beige Book states.
What to watch: Demand for community support services like housing and food assistance remained high even as service providers struggled with "deteriorating conditions," the report warns.
Funding from public and private sector sources dropped due to federal policy changes and companies' reduction in discretionary and philanthropic spending.
Some nonprofits had to cut programs and lay off workers as a result. That means local governments might have to shoulder a larger financial burden.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Meta buys a nuclear power plant (more or less)
Meta announced Tuesday morning that it was paying billions of dollars to keep an Illinois nuclear power plant running through 2047. The social media company will buy all the 'clean energy attributes' of Constellation Energy's Clinton Clean Energy Center, a 1.1 gigawatt nuclear power plant in central Illinois, starting in June 2027. Electricity will still flow to the local grid, so Meta's purchase won't directly power one of its data centers, though the company does have one about two hours north of Clinton in DeKalb. Rather, the deal is a bit of carbon accounting to lower the company's overall climate impact. It doesn't reduce emissions on the grid, but prevents them from potentially increasing. Neither company disclosed exact financial terms, but the multibillion-dollar deal will help Constellation relicense the plant and guarantee a customer for the duration of that license extension. Big Tech companies — Meta included — have recently become vocal backers of the fission industry. Before the recent boom in data center construction, nuclear reactors had faced a grim future as cheap wind, solar, and natural gas undercut their power-generating costs. But the surge in AI and cloud computing has sent tech companies searching for power, which in turn has led to a string of investments in nuclear startups. Meta and Constellation have alluded to the deal as a way to save the nuclear power plant from shutdown, though neither said it was at imminent risk of closure. The power provider initially planned to shut down the Clinton reactor in June 2017 as it faced stiff competition from cheap natural gas, but Illinois legislators stepped in with subsidies that encouraged Constellation to keep the lights on. Those subsidies are set to expire in 2027, and Constellation says the Meta deal will help prevent the closure. But since 2017, Constellation has not threatened to shut down the Clinton power plant. Instead, in 2022, the company said it would apply to extend the reactor's operating license through 2047. TechCrunch has asked Constellation about its plans for the Clinton power plant before the Meta deal materialized, and we'll update this article if we receive a reply. It's likely that the company would have turned to ratepayers, something Constellation hints at in today's press release: The deal with Meta 'essentially replaces the ZEC [zero-emission credit] program and ensures long-term operations of the plant without ratepayer support.' Meta and its Big Tech peers have fallen head over heels for nuclear power lately. Meta announced earlier this year that it was soliciting proposals for new nuclear power plants that would generate between 1 and 4 gigawatts of power. Today, the company said it has received over 50 qualified submissions for sites in more than 20 states. With the Meta deal, Constellation has landed another Big Tech patron for its nuclear fleet. In September, the power provider said that it would restart a reactor at Three Mile Island after Microsoft agreed to buy all the resulting power. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
San Francisco Chronicle
18 minutes ago
- San Francisco Chronicle
Putin's uncompromising demands emerge after the latest round of Russia-Ukraine peace talks
Russia took weeks to present to Ukraine with a 'memorandum' setting out its conditions for a ceasefire, as well as key guidelines for a comprehensive treaty to end the more than 3-year-old war. To practically no one's surprise, it's a list of the Kremlin's longstanding, maximalist demands that Kyiv and its Western allies see as nonstarters. Ukraine had set its negotiating stance before Monday's direct peace talks in Istanbul, emphasizing its readiness to declare a 30-day ceasefire immediately without preconditions that was proposed by U.S. President Donald Trump. Kyiv reaffirmed its refusal to abandon a bid for NATO membership and rejected acknowledgment of Russia's annexation of any of its regions. Both sides have established mutually exclusive red lines that make any quick deal unlikely. Moscow's demands, published in the Russian media, make it clear that President Vladimir Putin is determined to ensure the fulfillment of the goals in Ukraine he set when he launched the invasion on Feb. 24, 2022. Key points of the Russian and Ukrainian documents: Russia offered Ukraine a choice of two options for establishing a 30-day ceasefire. One option is that Ukraine must withdraw its forces from Donetsk, Luhansk, Zaporizhzhia and Kherson — the four regions Moscow illegally annexed in September 2022 but never fully captured. The second option described by Moscow as the 'package' proposal, presses Ukraine to halt its mobilization efforts and freeze Western arms deliveries — conditions that were suggested earlier by Putin. On top of that, the document also demands that Ukraine begin demobilizing its military, halt any redeployment of forces and ban the presence of any third-country forces on its soil. The 'package' option further proposes that Ukraine end martial law and hold elections, after which the two countries could sign a comprehensive peace treaty. Russia's terms for a comprehensive peace treaty The Russian document declares that conditions for peace must include the 'international legal recognition' of Moscow's 2014 annexation of Ukraine's Crimean Peninsula and its 2022 annexation of the Donetsk, Luhansk, Kherson and Zaporizhzhia regions. It says a future peace treaty should have Ukraine declare its neutral status between Russia and the West, and abandon its bid to join NATO. The document demands that Ukraine limit the size of its armed forces, recognize Russian as an official language on par with Ukrainian, ban 'glorification and propaganda of Nazism and neo-Nazism' and dissolve nationalist groups -– conditions reflecting Putin's goals from the outset of his invasion. The false allegations that neo-Nazi groups were shaping Ukraine's politics under President Volodymyr Zelenskyy, who is Jewish, have been vehemently dismissed by Kyiv and its Western allies. In Russia's view, a comprehensive peace treaty should also see both countries lift all sanctions and restrictions, abandon any claims to compensation for wartime damage, resume trade and communications, and reestablish diplomatic ties. It also suggests that the peace treaty between Russian and Ukraine be endorsed by a resolution of the U.N. Security Council. Ukraine's ceasefire position also remains firm The memorandum that Ukraine submitted to Moscow before the talks and shared with its allies emphasized the need for a full and unconditional 30-day ceasefire to set stage for peace negotiations. It reaffirmed Ukraine's consistent rejection of Russian demands for neutral status as an attack on its sovereignty, declaring it is free to choose its alliances and adding that its NATO membership will depend on consensus with the alliance. It emphasized Kyiv's rejection of any restrictions on the size and other parameters of its armed forces, as well as curbs on the presence of foreign troops on its soil. Ukraine's memorandum also opposed recognizing any Russian territorial gains, while describing the current line of contact as a starting point in negotiations. The document noted the need for international security guarantees to ensure the implementation of peace agreements and prevent further aggression. The Ukrainian peace proposal also demanded the return of all deported and illegally displaced Ukrainian children and an 'all-for-all' prisoner exchange. The opposing positions make peace seem elusive The sharply conflicting demands leave little hope for any quick progress in talks. By maintaining its maximalist demands, Moscow is seemingly unfazed by repeated threats of sanctions by the West or other pressure to make real concessions. Some observers see the Russian memorandum as a way by Moscow to formalize its negotiation position. 'Even an unsigned document gives the Kremlin a firmer diplomatic foothold,' said Moscow-based defense analyst Sergei Poletaev. Tatiana Stanovaya of the Carnegie Russia Eurasia Center noted that the document reflects Putin's key goal of of securing a 'friendly' Ukraine without a full-fledged military or ties of any kind with its Western allies. She noted the Russian document offers Ukraine a choice between the two options because Moscow knows that a Ukrainian withdrawal from the four regions "is not viable and seeks to push Kyiv toward the second as the primary course.' At the same time, Moscow's memorandum appears to indicate that 'Russia is open to considering leaving parts of the annexed regions that it does not control to Ukraine.' Stanovaya said Moscow's maximalist demands mean that 'the fighting is set to continue, even if bilateral interactions persist.'
Yahoo
18 minutes ago
- Yahoo
Putin's uncompromising demands emerge after the latest round of Russia-Ukraine peace talks
Russia took weeks to present to Ukraine with a 'memorandum' setting out its conditions for a ceasefire, as well as key guidelines for a comprehensive treaty to end the more than 3-year-old war. To practically no one's surprise, it's a list of the Kremlin's longstanding, maximalist demands that Kyiv and its Western allies see as nonstarters. Ukraine had set its negotiating stance before Monday's direct peace talks in Istanbul, emphasizing its readiness to declare a 30-day ceasefire immediately without preconditions that was proposed by U.S. President Donald Trump. Kyiv reaffirmed its refusal to abandon a bid for NATO membership and rejected acknowledgment of Russia's annexation of any of its regions. Both sides have established mutually exclusive red lines that make any quick deal unlikely. Moscow's demands, published in the Russian media, make it clear that President Vladimir Putin is determined to ensure the fulfillment of the goals in Ukraine he set when he launched the invasion on Feb. 24, 2022. Key points of the Russian and Ukrainian documents: Moscow's conditions for a 30-day truce Russia offered Ukraine a choice of two options for establishing a 30-day ceasefire. One option is that Ukraine must withdraw its forces from Donetsk, Luhansk, Zaporizhzhia and Kherson — the four regions Moscow illegally annexed in September 2022 but never fully captured. The second option described by Moscow as the 'package' proposal, presses Ukraine to halt its mobilization efforts and freeze Western arms deliveries — conditions that were suggested earlier by Putin. On top of that, the document also demands that Ukraine begin demobilizing its military, halt any redeployment of forces and ban the presence of any third-country forces on its soil. The 'package' option further proposes that Ukraine end martial law and hold elections, after which the two countries could sign a comprehensive peace treaty. Russia's terms for a comprehensive peace treaty The Russian document declares that conditions for peace must include the 'international legal recognition' of Moscow's 2014 annexation of Ukraine's Crimean Peninsula and its 2022 annexation of the Donetsk, Luhansk, Kherson and Zaporizhzhia regions. It says a future peace treaty should have Ukraine declare its neutral status between Russia and the West, and abandon its bid to join NATO. The document demands that Ukraine limit the size of its armed forces, recognize Russian as an official language on par with Ukrainian, ban 'glorification and propaganda of Nazism and neo-Nazism' and dissolve nationalist groups -– conditions reflecting Putin's goals from the outset of his invasion. The false allegations that neo-Nazi groups were shaping Ukraine's politics under President Volodymyr Zelenskyy, who is Jewish, have been vehemently dismissed by Kyiv and its Western allies. In Russia's view, a comprehensive peace treaty should also see both countries lift all sanctions and restrictions, abandon any claims to compensation for wartime damage, resume trade and communications, and reestablish diplomatic ties. It also suggests that the peace treaty between Russian and Ukraine be endorsed by a resolution of the U.N. Security Council. Ukraine's ceasefire position also remains firm The memorandum that Ukraine submitted to Moscow before the talks and shared with its allies emphasized the need for a full and unconditional 30-day ceasefire to set stage for peace negotiations. It reaffirmed Ukraine's consistent rejection of Russian demands for neutral status as an attack on its sovereignty, declaring it is free to choose its alliances and adding that its NATO membership will depend on consensus with the alliance. It emphasized Kyiv's rejection of any restrictions on the size and other parameters of its armed forces, as well as curbs on the presence of foreign troops on its soil. Ukraine's memorandum also opposed recognizing any Russian territorial gains, while describing the current line of contact as a starting point in negotiations. The document noted the need for international security guarantees to ensure the implementation of peace agreements and prevent further aggression. The Ukrainian peace proposal also demanded the return of all deported and illegally displaced Ukrainian children and an 'all-for-all' prisoner exchange. It held the door open to gradual lifting of some of the sanctions against Russia if it abides by the agreeme The opposing positions make peace seem elusive The sharply conflicting demands leave little hope for any quick progress in talks. By maintaining its maximalist demands, Moscow is seemingly unfazed by repeated threats of sanctions by the West or other pressure to make real concessions. Some observers see the Russian memorandum as a way by Moscow to formalize its negotiation position. 'Even an unsigned document gives the Kremlin a firmer diplomatic foothold,' said Moscow-based defense analyst Sergei Poletaev. Tatiana Stanovaya of the Carnegie Russia Eurasia Center noted that the document reflects Putin's key goal of of securing a 'friendly' Ukraine without a full-fledged military or ties of any kind with its Western allies. She noted the Russian document offers Ukraine a choice between the two options because Moscow knows that a Ukrainian withdrawal from the four regions "is not viable and seeks to push Kyiv toward the second as the primary course.' At the same time, Moscow's memorandum appears to indicate that 'Russia is open to considering leaving parts of the annexed regions that it does not control to Ukraine.' Stanovaya said Moscow's maximalist demands mean that 'the fighting is set to continue, even if bilateral interactions persist.'
