What is the Federal Reserve’s Beige Book?
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The Federal Reserve’s Beige Book,officially titled the summary of Commentary on Current Economic Conditions by Federal Reserve District,is a compilation of anecdotal evidence on economic conditions in each of the twelve Federal Reserve Districts. It provides a snapshot of the U.S. economy, covering labor markets, consumer spending, manufacturing, and real estate, and is published eight times per year.
The Beige Book isn’t a formal policy document, but it heavily influences the Federal Open Market Committee (FOMC) when setting monetary policy. It gathers information from businesses, economists, and other sources within each district, offering a more nuanced view than purely quantitative data. This qualitative data helps the Fed understand the “on-the-ground” realities facing businesses and consumers.
such as, the january 10, 2024 Beige Book reported that economic activity increased slightly with some Districts noting continued resilience in consumer spending, while others observed a moderation.
How is the Beige Book Compiled?
The Beige Book is compiled by the Federal Reserve Bank of New York, but the information originates from each of the twelve regional Federal Reserve Banks. Each bank gathers information from a variety of sources within its district.
These sources include reports from bank directors and officers, results from surveys of businesses, and information gathered from economists, market analysts, and other industry contacts. The information is then summarized and sent to the Board of Governors in Washington, D.C. The Board of Governors synthesizes these reports into the final Beige Book publication. The process is designed to be self-reliant of political influence and focused on objective economic observation.
According to the federal Reserve,the Beige Book relies on over 500 contacts across the twelve districts.
When is the Beige Book released?
The Beige Book is released eight times per year, approximately two weeks before each FOMC meeting. This timing allows the FOMC to consider the latest economic conditions when making decisions about interest rates and other monetary policy tools.
The release schedule is consistent throughout the year, typically occurring on wednesdays at 2:00 PM Eastern Time. The FOMC meetings themselves are held eight times a year, usually over two days. The Beige Book provides a crucial update between these meetings, filling in gaps left by lagging economic indicators.
The release dates for 2024 are as follows: January 10, February 21, March 20, April 17, May 22, June 19, July 24, and August 14.
What Information Does the Beige Book Cover?
The Beige book covers a broad range of economic indicators, categorized into several key areas. These include labor markets, consumer spending, manufacturing, real estate, and prices.
Within labor markets, the Beige Book reports on employment levels, job openings, wage growth, and labor force participation. For consumer spending,it examines retail sales,auto sales,and tourism. Manufacturing reports detail production levels, new orders, and inventory levels. Real estate reports cover home sales, construction activity, and rental rates. the Beige Book provides information on price pressures, including both input costs for businesses and prices paid by consumers.
The November 8, 2023 Beige Book noted that labor demand had cooled slightly in several districts, while consumer spending remained stable.
How Can I Access the Beige Book?
The Beige book is publicly available on the Federal Reserve Board’s website. It is released in PDF format and can be downloaded free of charge.
The website also provides an archive of past Beige Book reports, allowing users to track economic conditions over time. Along with the full report, the Federal Reserve also publishes a summary of the Beige Book’s key findings.The website is regularly updated with the latest reports and information.
You can find the Beige Book and related resources at https://www.federalreserve.gov/beigebook.htm.
