Beige Book Not Nearly Red Enough For Imminent QE
The Fed's Beige Book was just released and for those looking for cliff-dropping and panic-driven views of the plunge in the economy, we are sorry. The Beige Book was, well, beige. Some headlines, via Bloomberg:
- *FED SAW WEAKER U.S. MANUFACTURING, RETAIL SPENDING LAST MONTH
- *FED SAYS LOAN DEMAND `GREW MODESTLY' IN MOST DISTRICTS
- *FED SAYS MANUFACTURING EXPANDED `SLOWLY' IN MOST DISTRICTS
- *FED: HOUSING MARKET REPORTS `LARGELY POSITIVE'
- *FED SAYS DISTRICTS' BUSINESS CONTACTS `CAUTIOUSLY OPTIMISTIC'
The word-cloud highlights the 'continued activity' though does note 'demand pressures', 'slowed markets' and 'sales conditions'. Maybe we will just muddle through with our lower earnings and weaker outlooks but never quite bad enough to get Ben off the bench.
Full report here (pdf)