With the bulk of the US economic data of late showing modest improvement, expect the Fed’s Beige Book (which is produced in preparation for the upcoming FOMC meeting), expect the regional Feds to show a modest uptick in activity, on balance.
Does it matter? Not one bit.
The doves want to print because unemployment is high and falling slowly. The hawks want to hold off on further action and let the economy heal itself. There are more doves than hawks at this stage, so odds of QE3 seem to be rising despite the more upbeat economic outlook in the States.
