The stance of the Federal Reserve (Fed) is closely followed in all markets, including the cryptocurrency market. Therefore, it is very important to predict the steps that the US central bank will take. For this, documents, speeches and reports that provide clues about the Fed’s stance are important. To that end, the Fed has released the Beige Book to offer some clues.
Fed Beige Book: Growth and jobs slow
The US Federal Reserve (Fed), in its Beige Book survey of regional business circles, says that growth in the US economy and job market slowed in July and August. He also notes that many businesses expect wage increases to decline overall in the near term. “Contacts from most regions indicated that economic growth has been moderate,” the Fed says Wednesday in the report, released two weeks before each meeting of the policy-making Federal Open Market Committee (FOMC).
The Fed notes in the Beige Book that it sees signs that inflation and wage growth may slow down later in the year. The Fed’s Beige Book details the state of the economy in the central bank’s 12 districts. The report points to some slowdown that we see reflected in the economic data. Beige Book today underlines that in August, businesses in some regions had difficulties in reflecting their costs to consumers. Accordingly, it reveals that the costs of producing goods are rising faster than the prices at which businesses sell them.
Fed Beige Book: Price increases have slowed overall
Anecdotally, firms that cut profit margins in New York say consumers are becoming more price-conscious, and price is often the most important factor when deciding whether to make a purchase. Most regions now report a general slowdown in price growth. It reports a slowdown especially in the manufacturing and consumer goods sectors.
“Your wages stay alive, but the trend is about to reverse”
As for the job market, employment growth has been mostly sluggish across the US, as you can follow on Kriptokoin.com. Companies still struggle to find workers with the appropriate skill sets. This helps keep wages alive. This appears to be an obstacle to the decline of inflation. The Fed attaches great importance to this situation in its interest rate decisions. However, companies expect this trend to reverse in the fall.
In addition, companies say they expect a broad slowdown in wage growth. Now officials will use this information in two weeks for policy meetings that are expected to keep interest rates steady in the 5.25% to 5.5% range as we continue to monitor this cooler data we’ve seen on both the employment and inflation front. In the meantime, it should be noted that the Fed Beige Book is also in line with the latest data.
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