Fed Beige book downbeat due to stock market volatility

From MNI news and Netdania

Fed's Mar beige book is more downbeat vs Jan. It closed 
Feb 22 (before stocks stabilzed and included the blizzard pd) and merely 
says econ growth expanded. It also backed away from the moderate/modest 
descriptor in the first sentence. Book was summarized at KC Fed. 
Modest/moderate was used in 6 regions (with 2 others mixed/better) vs 9 
in Jan, and 3 areas said activity was flat/declined. Thus fewer areas 
were robust. Consumer spndg increased, auto sales mixed. Mfg flat, mixed 
across dists. RE rose, banking saw rising loan demand, ag was flat. 
Nonfin'l expanded slightly. Labor mkt continued to improve, wage growth 
varied from flat to strong. Prices held steady. Weakest areas were KC & 
Dallas (oil patch). NY area, which also complained in Jan, said activity 
was flat - due to cold weather, softer hsg, fewer high-end sales. And 
Philly grew 'slightly.'

It is quite clear from that Beige book tilts in line with the stock market sentiment and so does the Fed and Fed rate hike bets.

Hence, the report is unlikely to have any impact on the USD, given the financial markets have stabilized now.



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