Some headlines are stating that the market is waiting on release of the Beige Book which comes out this afternoon. I’m fine with that statement, but what the heck is the Beige Book and why does the market care?
First, the nick name is the Beige Book, but the official name is the Summary of Commentary on Current Economic Conditions by Federal Reserve District. I personally like the term Beige Book better than this. There are 12 districts that each compiles information on economic conditions in their district. These 12 reports are then summarized in a single document that is released in a beige binder (this is 100% a guess on my part – but probably a good assumption).
Why does the market care? Because it tells us what’s going on in the economy, that’s why. We’ll watch at 1:00 central and blog again this afternoon about the Summary of Comm… ah – Beige Book.