Beige Book economic information an additional heads-up for stock investors

Eight times a year, the Federal Reserve submits a record on economic conditions across the U.S. with the Beige Book. Beige Book data is gathered by each Federal Reserve financial institution in the respective district. The Beige Book released Thursday had little optimistic to say, except that economic growth, although dismal, had stopped slowing down.

Fed guesses come from the Beige Book

The latest Beige Book precludes a much envisioned meeting of Fed governors on Nov. 2-3. The economy will likely be reviewed along with approaches to help the economy in the Fed meeting. Beige Book info shows, accounts the Washington Post, that a stimulus is needed. Fed governors are hinting at purchasing bonds when pumping more money to the economic climate when the October Beige book addresses the weak job market, minuscule economic growth and threat of deflation.

News in the Beige Book that’s good

The Beige Book from the Fed’s shows all the bad things going on. Gail Marks Jarvis at the Chicago Tribune accounts on the good parts of the report. She points out that last spring, the Beige Book reported on “widespread signs of deceleration” in the economy. The October Beige Book info was not all negative. Some improvements were shown too. Bright spots highlighted by Jarvis include a continued expansion of manufacturing, new factory orders for lots of industries and a slight increase in consumer spending.

There can be changed in the bond sector because of the Beige Book

Seven of the 12 Fed regions showed an improvement economically according to the Fed’s Beige Book. The rest of them either went down a ton or just being questioned. The Fed is being expected to start into the stock industry based on the Beige Book, reports ABC News. In the last month traders have been buying bonds to get higher Treasury yields. After the November meeting, the Fed is expected to start buying more Treasury’s which would make bond yields go down a bit. Spending and investment could be stimulated if the long term interest rates are pushed even lower which is the plan of the Fed.

Articles cited

Washington Post

washingtonpost.com/wp-dyn/content/article/2010/10/20/AR2010102005512.html?sub=AR

Chicago Tribune

newsblogs.chicagotribune.com/marksjarvis_on_money/2010/10/fed-reports-glimmers-of-sunshine-in-economy.html

ABC News

abcnews.go.com/Business/wireStory?id=11929195