Fed Beige Book likely to show continued growth - Nomura

The Beige Book prepared for the 12-13 June FOMC meeting is likely to show continued modest to moderate growth across the 12 districts, according to analysts at Nomura.

Key Quotes

“Incoming data indicate some pickup in consumer confidence during March and April, after disappointing readings in January and February. Moreover, while concerns about US trade policy regarding steel and aluminum tariffs will likely show up again in the June Beige Book, broader concerns about trade tensions with China may have abated somewhat.”

“Tight labor markets and labor shortages likely persisted across most districts with price increases at a “moderate” pace, similar to April. Overall, the data for 2Q has so far been strong and we expect the June Beige Book to reflect that.”