Beige Book info supports large Fed transfer to bond market

The Beige Book, published by the Federal Reserve eight times a year, is a summary of economic conditions across the country. Beige Book data is gathered by each Federal Reserve bank in its respective district. Thursday’s Beige Book release offered no revelations, but a decline in growth over the summer has flattened out. Article resource – Beige Book data shows Fed about to enter bond market in a big way by Newsytype.com.

The Beige Book makes Fed rumors occur

Before the Fed governors meeting, the latest Beige Book came out. November 2-3 can be when this meeting happens. Most analysts, economists and investors expect the Fed to unveil new and unconventional approaches to stimulate the economy. Beige Book information exhibits, accounts the Washington Post, that a stimulus is needed. The October Beige Book talks all concerning the reasons why pumping money into the economic climate and purchasing huge bonds as Fed governors have been hinting at would be the best idea. It talks about the weak job sector, poor economic growth and threat of deflation in order to do this.

Beige Book bright spots

The Fed’s Beige Book tells a tired old story, but Gail Marks Jarvis at the Chicago Tribune reports on a couple of patches of blue in the dark overcast. The Beige Book talked about “widespread signs of declaration” in the economy just last spring. There were improvements shown in the October Beige Book information. Jarvis explains that some of the good news involves new factory orders in numerous industries, a rise in consumer spending and manufacturing expanding.

How the Beige Book affects the stock sector

Overall, the Fed’s Beige Book said seven of the Fed’s 12 regions showed reasonable economic improvement. The rest of them either went down a ton or just being questioned. Based on ABC News, investors interpret the Beige Book in their own way. They see it as a sign that the stock sector will start to have the Fed in it soon. A higher Treasury yield is what traders are trying to get by purchasing bonds due to this. Bond yields will likely start to go down following the November meeting. This is as the Fed is expected to start purchasing Treasury’s. The Fed plans on getting interest rates to even lower levels. This will stimulate investment and spending in theory.

Articles cited

Washington Post

washingtonpost.com/wp-dyn/content/article/2010/10/20/AR2010102005512.html?sub=AR

Chicago Tribune

newsblogs.chicagotribune.com/marksjarvis_on_money/2010/10/fed-reports-glimmers-of-sunshine-in-economy.html

ABC News

abcnews.go.com/Business/wireStory?id=11929195