Highlights of the Beige Book:

  • Pace of growth little changed from prior period
  • Outlook 'generally was positive' despite widespread concerns about possible negative impacts of trade-related uncertainty
  • Employment grew at a slightly slower pace but labor market remained tight with contacts across country experiencing some difficulty in filling jobs
  • Some contacts reported "significant" increases in entry level wages
  • Price inflation was 'stable to down slightly' from prior period
  • Firms generally saw higher input costs on labor and tariffs but ability to pass them on was limited
  • Manufacturing was 'generally flat'
  • Increased demand for loans was 'broad based'
  • Data collected by San Francisco Fed at or before July 8

Does any of this read like a reason to cut rates? There are two camps at the Fed, those worried about inflation and those worried about trade. Somehow they have come together in a dove-storm.