Beige Book

The Beige Book is a summary of economic conditions across the United States, compiled for the Federal Reserve Board. Each Federal Reserve Bank collects anecdotal information on current economic conditions in its district through reports from bank directors and interviews with key business leaders, economists, market experts, and other sources. The Beige Book consolidates this information by district and sector.

It is released at 2:00 pm EST two Wednesdays before each FOMC meeting. This report provides insight into what the Fed governors are considering as they prepare for their upcoming FOMC meeting.

Why is the Beige Book important? The Fed utilizes this report, along with other indicators, to shape interest rate policy during FOMC meetings. The Beige Book is regarded as a valuable tool, serving as a general indicator of the overall strength of the economy. It is believed that it can occasionally influence market reactions if the findings significantly deviate from current analyst expectations.

However, it is important to note that the report does not offer a definitive perspective on what FOMC members think about the economy; rather, it presents a series of economic facts concerning various districts. Additionally, while these facts may be accurate, they are presented as descriptive information rather than a breakdown of actual data.

If the Beige Book indicates inflationary pressures, the Fed may decide to raise interest rates, which is bullish for the dollar. Conversely, if it suggests recessionary conditions, the Fed may lower interest rates, which is bearish for the dollar.

What is the Beige Book? The 'Beige Book' is the informal name for the report issued by the Federal Reserve, officially titled “Summary of Commentary on Current Economic Conditions by Federal Reserve District.” The Beige Book is published eight times a year, two Wednesdays prior to each FOMC (Federal Open Market Committee) meeting, and serves as a key resource for informing members about changes in the economy since the last meeting.

The Beige Book is not a collection of statistical data; it is a compilation of anecdotal information from each of the 12 Federal Reserve Districts, based on interviews with local business people and academics surveyed about the economic health of their regions. Essentially, the Beige Book gathers data from each District within the Federal Reserve, mixing anecdotal evidence on current economic conditions obtained through reports from various bank directors and interviews with economists and market experts, along with other sources. The Beige Book report presents this information in summary form by both district and sector.

Two weeks before each FOMC meeting, the Fed releases the Beige Book, named for its tan cover.