Fed's Beige Book preview - Nomura

Analysts at Nomura offered a preview of the Fed's Beige Book.

Key Quotes:

"In the Beige Book prepared for the September FOMC meeting, the Federal Reserve noted that economic activity expanded at a “modest to moderate pace” across the 12 reserve districts in July and August. Most of the information for the September Beige Book was collected before Hurricane Harvey’s landfall.

In preparation for the October FOMC meeting, we expect the Beige Book to point to sustained economic activity albeit with some transitory disruptions due to the recent hurricanes. In particular, activity in the 11th district (Dallas) and sixth district (Atlanta) will likely provide more anecdotal evidence on the impact from Hurricanes Harvey and Irma, respectively. 

As the Beige Book is based largely on anecdotal evidence from business leaders and market participants, the report for October’s meeting could provide additional information from local businesses in the affected areas on how long the recovery is expected to last. Elsewhere, anecdotal information on the housing market, currently experiencing a supply shortage, and local price pressures will be worth noting."