Description:

Beige Book provides the Fed’s notes on the general conditions of the economy around the country.

Released:

Contents released two Wednesdays before each Federal Open Market Committee (FOMC)

Calculation:

Staff members from all 12 regional Federal Reserve Banks interview local constituents about the health of their local economy. These interviews normally take place about 3 weeks before each FOMC meeting.

Key Point:

The FOMC meets 8 times per year during “closed-door” meetings and they control monetary policy. Ahead of these meetings, not much information, if any, is revealed as to their view of current economic conditions. The only document released ahead of the FOMC meeting is the Beige Book. It is important because it is used as a reference by the members of the FOMC during their “closed-door” discussions and provides insights to inflation, employment, agriculture, banking, manufacturing, and consumer spending. The financial markets scrutinize the language for any indication about inflationary pressure.

Release site: Click here