Fed Policy Outlook: nothing in the Beige Book to alter expectations
Fed Policy Outlook: nothing in the Beige Book to alter expectations for the upcoming September 19, 20 FOMC decision. No one has been expecting any action on rates this month, and that remains the case, especially in the wake of Harvey and Irma. Concurrently, the Fed is still expected to announce it will begin unwinding its balance sheet. The Fed continues to see moderate/modest growth in general, not really sufficient for the consensus to argue for a tightening. While labor markets remain tight, that's been the case for several quarter. And though there was some mention of rising wages and prices as a result of those conditions, the pick up is not that large and is not being felt across the economy. Hence, it won't shake concerns of some of the doves that inflation is not moving toward the 2% target.