Mpls Fed survey: Upper Midwest businesses report falling profits, tariff uncertainty

February 24, 2026 - 21:58

A recent survey conducted by the Federal Reserve Bank of Minneapolis reveals a concerning trend of falling profits across the Ninth District, which encompasses the Upper Midwest. Businesses from various sectors are reporting a downturn in their financial performance, with many pointing to government policies as a primary source of pressure.

The report indicates that uncertainty surrounding trade and tariffs is weighing heavily on business owners. This climate of unpredictability is making it difficult for companies to plan for the future, manage costs, and set stable prices. The impact is felt across the region, suggesting a broad economic softness rather than an issue confined to a single industry.

Beyond trade concerns, businesses also cited challenges with high interest rates, which are increasing borrowing costs and constraining investment. The combination of squeezed profits and economic uncertainty is contributing to a cautious outlook among regional firms. Many are adopting a wait-and-see approach, delaying expansion plans and new hiring until the policy environment becomes clearer. This pullback in business activity and confidence signals potential headwinds for the regional economy in the coming months.