REPOST: Beige Book, Mumbling and Bumbling Around Policy and Tapering QE

The Federal Reserve has released its Beige Book report, showing that the economy continues to expand at a moderate pace. Expansion occurred in most districts, but the Dallas Fed district was the one reporting strong growth. Housing growth around the nation was moderate to strong, and hiring expanded at a measured pace. Employers are still noting difficulty finding qualified workers, although wage pressures were contained. Unfortunately, our take is that finding any further insight into the timing or amount of tapering bond buying is just not really present.

Today’s report said that manufacturing expanded in most districts, with most districts noting slight to moderate gains in consumer spending and a moderate increase in vehicle sales. Tourism was said to be showing signs of strength in several districts.

Business services were expanding and transportation traffic increased for producer, consumer and trade goods. Bank lending has increased since the previous report, and the Fed showed that credit quality and deposits increased at a time when credit standards were largely unchanged.

Agricultural conditions have remained mixed in most districts. The energy sector’s activity was flat at a time while mining was down. Districts reported level prices to mild price increases; some manufacturers raised prices and some increases for input prices were noted.

FULL BEIGE BOOK RELEASE

Today’s report was prepared at the Federal Reserve Bank of Minneapolis and based on information collected on or before May 24, 2013.