Story perspectives

Texas Economy Cools as Tariffs and Shutdown Bite

11/20/2025

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Summary

Story summary

Federal Reserve Bank of Dallas (Dallas Fed) reports tariffs raised costs and cooled Texas' economy after summer growth.
Nearly half of surveyed firms reported rising input prices.
Policy uncertainty, low oil prices, and reduced immigration further strain the Texas economic outlook.
The report notes 96,000 federal employees were furloughed during a government shutdown, impacting economic activity.
One-third of firms expect a boost from the One Big Beautiful Bill Act's tax provisions.

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Story summary

Federal Reserve Bank of Dallas (Dallas Fed) reports tariffs raised costs and cooled Texas' economy after summer growth.
Nearly half of surveyed firms reported rising input prices.
Policy uncertainty, low oil prices, and reduced immigration further strain the Texas economic outlook.
The report notes 96,000 federal employees were furloughed during a government shutdown, impacting economic activity.
One-third of firms expect a boost from the One Big Beautiful Bill Act's tax provisions.