Financial encyclopedia

The United States will hold a FOMC interest rate decision-making meeting on June 15th. When evaluating the economic environment in the United States, FOMC members will refer to the "Beige Book" published by the Federal Reserve about two weeks before each FOMC meeting. (This time was announced on June 1st)

What is a beige book?

The official name of the Beige Book is "Summary of Comment on Current Economic Conditions". Because the cover of the report is bound in brown, it is called Beige Book.

The Beige Book was collected from interviews with local entrepreneurs, economists, market experts and other professionals by 12 federal reserve banks in their respective districts, which integrated their views on the current economic situation in each district. Therefore, the content of the Beige Book is the view of the business community on the boom, not the official view of the Federal Reserve on the current economic situation.

The purpose of the Beige Book Report is to enable FOMC members to understand the economic situation of various regions, including the current situation of consumption, employment, manufacturing and real estate.

What effect does the beige book have on the market?

The contents of the Beige Book usually do not directly affect the financial market, but it may affect the decision of FOMC members on the direction of interest rate policy. When the contents of the Beige Book report reveal that the current economy is obviously declining, FOMC's decision may tend to cut interest rates; On the contrary, if the economic outlook is obviously optimistic, it may be biased towards raising interest rates.