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3 Sep 2015
US witnessing moderate pace of growth, Beige book indicates - RBC
FXStreet (Delhi) – Josh Nye, Economist at RBC Economics notes that the yesterday’s release of Fed’s Beige Book report, added to this evidence that the US economy is continuing to grow steadily.
The conclusion that can be drawn from that report is that while the economic and labour market backdrop would warrant the Fed beginning to withdraw monetary policy stimulus in September, recent turmoil in financial markets could keep the central bank on the sidelines.
Key Quotes
“Economic activity “continued to expand across most regions and sectors” during the reporting period (July to mid-August). It was noted that, in most cases, overall results “represented a continuation of the overall pace” noted in the previous report.”
“Reports on manufacturing activity were “generally positive,” indicating an improved assessment relative to the “uneven” characterization of the previous report.”
“Economic conditions have improved further since the July 29, 2015 FOMC meeting. In addition to second-quarter 2015 growth being revised upward to a sizeable 3.7% annualized gain, a variety of recent indicators (including retail sales, industrial production, housing starts, home sales, durable goods, and auto sales) point to solid momentum being carried into the third quarter.”
The conclusion that can be drawn from that report is that while the economic and labour market backdrop would warrant the Fed beginning to withdraw monetary policy stimulus in September, recent turmoil in financial markets could keep the central bank on the sidelines.
Key Quotes
“Economic activity “continued to expand across most regions and sectors” during the reporting period (July to mid-August). It was noted that, in most cases, overall results “represented a continuation of the overall pace” noted in the previous report.”
“Reports on manufacturing activity were “generally positive,” indicating an improved assessment relative to the “uneven” characterization of the previous report.”
“Economic conditions have improved further since the July 29, 2015 FOMC meeting. In addition to second-quarter 2015 growth being revised upward to a sizeable 3.7% annualized gain, a variety of recent indicators (including retail sales, industrial production, housing starts, home sales, durable goods, and auto sales) point to solid momentum being carried into the third quarter.”