The Federal Reserve's Beige Book highlighted mixed results from the FIFA World Cup, co-hosted by the U.S., indicating that while median ticket prices exceeded $900 and some cities experienced increased hotel bookings and bar sales, the overall economic benefits were constrained by broader economic challenges.
For instance, the Boston Fed noted that hotel bookings initially fell short of expectations but improved after price reductions. Bars in Boston reported increased beer sales, particularly among Scottish fans, while New York City saw higher hotel occupancy and prices.
However, the New York Fed also pointed out a decline in international visitors, particularly from Canada, attributed to recent tariff policies and a shift in consumer spending towards domestic products.
The San Francisco Fed observed high tourist volumes in World Cup host cities but noted a general slowdown in consumer spending across other markets, as rising oil prices prompted consumers to seek cheaper alternatives and reduce discretionary spending. This suggests that while the World Cup provided a short-term boost, the underlying economic environment remains challenging for many sectors