Fed’s Beige Book Suggests Continued Modest Economic Growth

The latest edition of the Federal Reserve’s (Fed) Beige Book, released 5/31/17, continued to deliver a positive view of the U.S. economy.

The Beige Book is a qualitative assessment of the domestic economy and each of the 12 Fed districts individually, prepared eight times per year, ahead of each of the eight Federal Open Market Committee (FOMC) meetings. LPL believes itis best interpreted by measuring how the key words change over time. The qualitative inputs for the May 2017 Beige Book were collected in April 2017 through May 22, 2017.

Based on LPL’s analysis, the Beige Book continues to deliver a positive view of the U.S. economy.  LPL’s Beige Book Barometer (strong words minus weak words) fell slightly to +75 in April, indicating continued steady economic growth.  However, words related to wage pressure have risen slightly over the last six months, indicating a modest but still very manageable impact.

Click to read LPL Research’s full report by LPL Financial’s Matthew E. Peterson, Chief Wealth Strategist, and Barry Gilbert, PhD, CFA Senior Economic Analyst.