October 7, 2025

Texas Executives Concerned Over Domestic Policies and Inflation

News Summary

A recent survey by the Federal Reserve Bank of Dallas reveals that Texas business executives are increasingly worried about domestic policy uncertainty and inflation. This shift from earlier concerns about geopolitical instability highlights the economic challenges businesses face, including rising labor costs and changing tax provisions. Additionally, the rapid rise of remote work arrangements is creating a mixed response among executives, as they navigate the impacts on productivity and workplace culture. As they confront these challenges, adaptation and resilience remain key themes for Texas businesses.

Texas business executives are increasingly concerned about domestic policy and inflation, alongside recession fears, according to a recent survey conducted by the Federal Reserve Bank of Dallas. This shift in priorities was evident among the 323 executives surveyed from September 16 to 24, just before the anticipated federal government shutdown.

In the survey results, executives expressed heightened worries about domestic policy uncertainty, labor costs, and inflation for the upcoming six months. This marks a significant change from June, where geopolitical instability was the predominant concern. Business leaders are now focusing more on internal factors affecting their operations and the economy at large.

Many executives expect changes to tax provisions under President Trump’s recent economic package, known colloquially as the “big beautiful bill.” Approximately one-third of those surveyed believe these tax modifications will have a positive impact on their businesses. Conversely, about 13% anticipate a negative outcome, while 22% remain uncertain regarding the effects of the tax changes.

The survey results also shed light on the state of remote work in Texas. Since February 2020, the percentage of workers in Texas companies engaged in fully remote or hybrid work arrangements has nearly quadrupled. Despite this significant increase in remote work options, many executives voiced dissatisfaction with the continued reliance on remote work formats, as highlighted in their comments during the survey.

The growing concerns around inflation are particularly timely, given the current economic climate characterized by rising prices and supply chain interruptions. Business leaders worry that these factors could contribute to a potential recession, further complicating their operational plans and strategies.

In addition to inflation, executives flagged domestic policies as a major stressor. This change in focus indicates a shift in business leaders’ perceptions of the risks facing Texas businesses. Increased labor costs are also a critical point of concern, as companies navigate the tightening labor market and compete for skilled employees, pushing wages higher.

The heightened domestic policy scrutiny implies that Texas business executives are closely watching the actions of state lawmakers and federal agencies. This vigilance is essential as policy changes, particularly those related to taxation and economic regulation, could significantly impact their companies’ financial health and growth trajectories.

Overall, the findings from the Federal Reserve Bank of Dallas survey illustrate a complex economic landscape for Texas businesses. Executives are grappling with inflationary pressures, the implications of domestic policy changes, and an evolving workforce landscape that includes a pronounced shift towards remote and hybrid work arrangements.

The survey results indicate a pressing need for businesses to adapt and strategize in response to these immediate challenges while remaining mindful of the broader economic implications in a post-pandemic world. As Texas businesses prepare for the upcoming months, navigating these uncertainties will be key to maintaining stability and fostering growth.

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Author: STAFF HERE GEORGETOWN

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