Fed's Beige Book: Modest wage hikes broadened

Author: Adam Button | Category: Central Banks

Highlights of the April 19, 2017 Beige Book

  • More firms cite high labor turnover and difficulty retaining workers
  • Employers had a harder time filling low-skilled jobs
  • Prices rose modestly on balance since last Beige Book
  • Cites stronger light vehicle sales, softer retail sales ex autos
  • Economy grew at modest to moderate pace
  • Richmond Fed prepared Beige Book
  • Manufacturing continued to expand at modest to moderate pace
  • Firms mostly expected mild to moderate price growth over next several months

The comments on wages are USD-bullish. It's the kind of thing that would increase the confidence of the bulls on rate hikes. That said, the Beige Book isn't going to send a stronger signal than 10-year notes, which are telling the Fed not to worry about inflation.