Highlights from the Fed's Beige Book released Oct 18, 2017:
- Modest-to-moderate pace is the same as the prior Beige Book
- Economy advanced amid 'widespread labor tightness'
- Wage pressures modest to moderate despite tight labor market
- Retail spending rose slowly
- Price pressures remain modest
- Home sales constrained by low inventory, construction improved
- Labor shortages restraining growth in some sectors, including building, transport and skilled manufacturing
- Growing use of sign-on bonuses to attract workers
That's somewhat upbeat. Remember, this one was prepared by the Minneapolis Fed, which is run by a major dove.
There are some sparks for wage growth in the details, some stuff that will keep the hawks hawkish and the Fed on pace for gradual hikes.
On net, I think those confident of a December hike should be feeling a bit more comfortable.
In any case, the market greeted this report with a yawn, which is typical.
