This Wednesday, the main indicator for a change in interest rates will be released— the Beige Book.
Roughly two weeks before monetary policy meetings of the Federal Open Market Committee, the Beige Book depicts an overheating economy or inflationary pressures, according to Bloomberg Markets. Since it is released in advance of FOMC meetings, investors can take a look at one of the many indicators Federal officials use to determine interest rate policy and position their portfolios accordingly.
In June 2017’s Beige Book, economic activity was up in all 12 Federal Reserve Districts, with the pace of growth ranging from slight to moderate. Many districts experienced softer consumer spending and loan demand was steady.
Residential construction activity was flat to expanding in most districts. Four out of six First District states reported year-over-year changes to April 2017. Single-family home sales were down by moderate margins, according to the report, attributed to a decline in inventory rather than weak demand.
At the time, the report said most were optimistic about market activity and continued strong buyer demand, in part because of high consumer confidence due to low unemployment rates. However, some were still concerned that first-time homebuyers could be priced out of the market.
How will consumers feel in the incoming beige book? Take a look [1] this Wednesday at 2 p.m. EDT.
Other Events in the Week Ahead:
Freddie Mac Weekly Mortgage Survey [2], Thursday, 10 a.m. EDT.
Fed Balance Sheet [3], Thursday, 4:30 p.m. EDT
Senate Banking Executive Session [4], Thursday, 9 a.m. EDT