Tea party
Textual analysis of Beige Book and ECB's Account of September Monetary Policy Meeting
The Beige Book was released a couple of days ago. Textual analysis suggests the Fed districts remained worried about inflation, while they reduced their growth outlook for the economy. On balance, it suggests policy will remain unchanged. The Beige Book is but one input to the forthcoming FOMC meeting, though one we presume it reflects, in condensed form, a relevant assessment of the economy from around the country. Of course, as the Beige Book data was collected before 6th October, it does not include assessment of conflict in Israel.
Last week, the ECB released its Account for the Monetary Policy Meeting of 13-14th September. We can therefore get a reasonable comparator of how the European central bank’s thinking differs from the Fed (with a lag). There are clear differences. The ECB document reflected a marked decline in the outlook about the economy, in contrast with the modestly optimistic outlook maintained in the Beige Book.
Economic outlook
Inflation assessment
In fairness, there is far more to be worried about in Europe than in the US, for as bad as our energy policies are, their's are worse and that will continue to impact their economy for a very long time