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.
