The Federal Reserve released its Beige Book survey just as “Street Signs” began today. The survey showed the U.S. economy entered 2007 with moderate growth – including moderate wage gains and price increases. The bottom line was that the Fed appeared to still be “upbeat on inflation,” according to CNBC’s Steve Liesman (meaning it's not overly worried about inflation). “Street Signs” had instant analysis of the beige book release with Mike England of Action Economics and Joseph LaVorgna of Deutsche Bank. The pair discussed the survey with Erin Burnett.
FYI: The "Beige Book" is published eight times per year. Each Federal Reserve Bank gathers anecdotal information on current economic conditions in its District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources.
Okay--now for what that all means. LaVorgna noted how little things seem to have changed from the last Beige Book release. The Fed’s characterization of the economy--showing mixed to moderate growth is “very much of the Goldilocks mindset” and is evidence that the Federal Open Market Committee has no short-term plans to hike rates.