Highlights of the Fed’s anecdotal report on the economy:

  • Hiring increased modestly or was unchanged across districts from early Oct through mid-Nov
  • Upward pressure on wages and inflation contained
  • Staffing services more optimistic than they were 3 months ago and expect steady growth into 2014
  • Residential real estate improved across many districts
  • Reports on retail spending were positive
  • Freight volumes showed signs of strengthening
  • Full text

This is the status quo. If the Fed was eager to taper, they could have inserted some optimism but there’s nothing here and comments on hiring are even a tad disappointing.

“Hiring showed a modest increase in the Philadelphia, Richmond, St. Louis, Minneapolis, and Dallas Districts, while hiring in the remaining Districts was largely unchanged.”

This should cool fears about tapering, which will be good for stocks but won’t help the dollar, except perhaps against the yen.