Beige Book will offer an updated look at the economy
There is a divergence in the US economy. Business investment is weak and manufacturing is stalled while consumers and jobs remain strong.
Worries that global weakness will seep into growth led the Fed to cut in July and has led the market to price in another cut this month. The thing to focus on in Beige Book is how the trade war is affecting companies and consumers. Maybe it's just additional uncertainty or maybe it will lead to price hikes, job cutbacks or halting investment.
Unfortunately, the Beige Book is a messy read that's full of peaks and valleys. At times, the market gets caught up in the headlines and over-interpretation of murky signals.
The report is due out at the top of the hour (2 pm ET, 1800 GMT).
