Fed's Beige Book should describe growth as "modest" or "moderate" again
Fed's Beige Book should describe growth as "modest" or "moderate" again, as it has done most of the year. The September 7 report did note a couple of Districts showed no change while others acknowledged some slowing. Recent data releases suggest this could again be the case. Labor market conditions should have remained tight, in general, and especially for jobs that require specialized skills. But there could be some indications of slack as well, as noted by Yellen. Meanwhile, wages and prices may be seeing some slight upward tilt too, especially for more highly skilled workers. The report won't alter expectations that the FOMC will be sidelined in November ahead of the elections, but remains on course to hike rates in December.