What is the Beige book
The Beige book is a review of the US economy from the Fed, gathered by the Fed’s 12 region banks. It contains industry, nonmaterial, agriculture, labor and real-estate markets and data from all financial organizations. It can be useful when studying the tendency of other indicators. For instance, if there are reports about an interest rate change it could be consulted to analyze labor-market data and prices. The beige book is released 8 times a year, a fortnight before the USA Fed Market Committee meeting on Wednesdays at 14:00 EST (New York).
This indicator shows the level of use of a country’s industrial potential. If the volume of this level is up to 80%, the balance between economic growth and the inflation level may be called good. If the volume strays outside of this “corridor” it may be an indicator of inflation, and if inflation grows, the national currency grows too. This factor has a moderate effect on the currency markets and its data is published monthly together with the Industrial Production Index at 09:15 EST (New York).
Written by FxErvin