Preview of the Fed Beige Book: momentum picked up? - Nomura

Analysts at Nomura offered a preview of the Fed Beige Book.

Key Quotes:

"We expect the Fed Beige Book prepared for the 14–15 June FOMC meeting to show that economic momentum picked up somewhat to start the second quarter. We will look for color on how the industrial sector continues to adjust to the various headwinds that it has faced for the last year, and the sector’s expectations for future activity. It will also be interesting to see the state of the consumer, especially since data on retail spending in Q2 have so far been positive. We will also look to see how the Fed districts describe the state of the housing sector, which we expect to be one of the bright spots in the economy in the medium term. We will look for additional insights on price and wage growth across the districts to determine if there are any inflationary pressures building. And of course, any comments on the state of the labor market will be worth watching."