- The Boston Fed
The Fed publishes its Beige Book eight times per year. Central bankers have been doing so since 1983, however, even at that time they were considering its content harmless, and perhaps, that is why they have put a beige cover on it. Another reason why it has mild impact on markets is the fact the FOMC also receives 2 other non-public books, which tend to have a stronger impact on rate decision.
Previous Beige Book was dominated by the word "weather", as extremely bad weather conditions affected growth practically in all sectors. This time all 12 Federal Reserve districts reported on stronger economic activity, with the pace of growth accelerating most in Cleveland and St. Louis. Sales at American retailers strengthened, with a half of all districts reporting stronger vehicle sales, while tourism climbed as well. Despite disappointing manufacturing PMI, the Beige Book showed activity in the manufacturing sector expanded throughout the country, and was exceptionally strong along the East Coast.
Janet Yellen has cited the persistent weakness in the housing market, as one of the major drags for the economy. This week's report echoed her comments and showed that due to low inventories potential homebuyers have been constrained in many districts. Additionally, residential construction was sending mixed signals.
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