Not all data is created equal. The data contained in the Beige Book rocks as far as I’m concerned. Here’s a look at what it is and why I care.
Beige Book: Window on Main Street
The beige book compiles qualitative observations made by community bankers and business owners about economic (labor market, prices, wages, housing, tourism, manufacturing) and banking (loan demand, loan quality) conditions in each of the 12 Fed districts (Boston, New York, Kansas City, etc.).
This local color that makes up each Beige Book is compiled by one of the 12 regional Federal Reserve districts on a rotating basis – the report is much more “Main Street” than “Wall Street” focused. It provides an excellent window into economic activity around the nation using plain, everyday language.
Eight Times per Year
The report is prepared eight times per year ahead of each of the eight Federal Open Market Committee (FOMC) meetings. The next FOMC meeting is June 17-18, 2014.
The Federal Open Market Committee, a committee within the Federal Reserve System, is charged under United States law with overseeing the nation’s open market operations (i.e. the Fed’s buying and selling of U.S. Treasury securities). ~John Canally, CFA
U.S. economic headwinds may be declining.
The weather’s impact on early 2014 results were real. The remainder of this year may show improvement.
With exception of health care, concerns over government policy are fading.
Until next time,
Susan R. Linkous
Economic forecasts may not develop as expected.
All of above is opinion not investment advice.
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