Expect employment to remain a highlight and a pick up in inflationThe Beige Book will be released at the top of the hour.
Expect to see:
- Continued positive talk about employment growth
- The potential for a pickup in inflation and perhaps wages from companies passing on some of the tax breaks to employees and tight labor conditions
It will be interesting to hear the comments on the tax cuts and implications for capital spending.
The tariff risks will not be part of the story this month at least. So overall, it should be upbeat about the economy.
Fed comments have also been more positive. Fed Chair hinted at 4 tightenings in 2018. Fed’s Brainard said overnight that the headwinds are turning more to tailwinds for the US economy. Fed’s Kaplan called the US and global economies as strong.