Often we hear about watching the market for speech beige issued by the Federal Reserve Bank, many associate anticipation and great interest by the market to the extent of its importance. However, there are many do not know what is the beige book so in this article we will explain what is precisely the beige book.
Beige Book is a survey of economic conditions in each of the 12 provinces of the area banking subsidiary of the Federal Reserve. Each bank is to report on the extent of economic growth speed in his area, how difficult or easy Employment, also discusses the general pace of business activity. Banks report on local events that affect their areas covers several events, including the closure of the port, storm strikes. In addition, as Crown beige also provides useful insight into how companies affected area in the presence of each bank national and global conditions change, for example, currency exchange rates, inflation and oil prices.
Beige Book report also provides developing industrial sectors and deteriorating industrial sectors also what gives the best economic situation affected to a large extent the idea of the industry. And industrial sectors are divided into various categories, including manufacturing, high technology, financial services ... also includes other sectors such as tourism, retail, real estate and agriculture.
Eight times This report is published in the year where all the federal Reserve Bank collects information on current economic conditions in his area. Overall Beige Book reports from Bank and Branch directors and interviews with key players such as businessmen, economists, market experts and others made up. The book summarizes this information depending on the province and the sector during the preparation of the meetings of the members of the FOMC gets on the "Green Book" which includes the expectations of staff for the US economy. This is coupled with the "Blue Book", which displays the administrative apparatus of alternatives to monetary policy analysis. Only beige book is available to the public and is issued about two weeks before the FOMC meeting.
Beige Book preparation usually starts about six weeks ago, before each scheduled meeting of the Federal Committee. Each Federal Reserve Bank offers a survey of its own contacts usually ask the respondents to focus their comments on current economic topics and conditions that have been observed since the last FOMC meeting. The evaluation of the survey results for each individual region and summarized by economists at the Reserve Bank. And is preparing a national survey provides an overview of national economic conditions of the last of the twelve Reserve Bank.
Beige Book is a kind of basis to discuss the situation of the economy in the Open Market Committee of the Federal meeting, which lasts for two days. The Fed publishes the Beige Book eight times a year and is usually announced time 02:15 ET, the day Wednesday, two weeks before the FOMC meeting. The exchange of roles between the members of the Federal Reserve Bank in the preparation of the Beige Book, where each bank is prepared once a year.
It is important to remember that the main objective of the meetings of the Federal Reserve is to determine monetary policy, is to achieve this goal after discussing the expected foreign and domestic financial conditions of the United States. Although the Beige Book is not the only economic report received by FOMC members before each meeting (receiving economic outlook Green -ketab and analysis of monetary policy alternatives -ketab blue) since it is only available to the public this is the reason why beige book is of great importance by and economists and investors on the agenda Open Market Committee alike.
So, before the next meeting, just like the authors of the Fed's policy, you may want to look at the Beige Book to gain a deeper understanding of recent developments in the national economy and in key sectors and industries in your regional economy.
