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Nomura: Beige Book and Jackson Hole
Thursday, August 30, 2012 - 06:48
The Fed released the Beige Book yesterday – the assessment of current economic conditions. According to the central bank, US economy continued to expand “gradually” in July and early August as improvement in housing and retail sales helped outweigh weakness in manufacturing.
Nomura: “The Beige Book suggests the anemic pace of growth in the economy continued into the third quarter, an assessment that does not seem to qualify as the sort of ‘substantial and sustainable strengthening’ needed to dissuade many FOMC members that ‘additional monetary accommodation’ would be needed. It does not alter expectation for the Chairman’s remarks at Friday’s Jackson Hole Summit, nor does it alter our judgment that the FOMC will eventually embark on QE3 in response to persistently high unemployment and greater downside risks in H2 2012. We expect the chairman's remarks to reinforce the key themes from the minutes of the last FOMC meeting, which include absent a significant improvement in the outlook further easing will be warranted, and large-scale asset purchases remain the most effective tool available to the FOMC.”
Nomura: Beige Book and Jackson Hole // FBS Markets Inc.
Thursday, August 30, 2012 - 06:48
The Fed released the Beige Book yesterday – the assessment of current economic conditions. According to the central bank, US economy continued to expand “gradually” in July and early August as improvement in housing and retail sales helped outweigh weakness in manufacturing.
Nomura: “The Beige Book suggests the anemic pace of growth in the economy continued into the third quarter, an assessment that does not seem to qualify as the sort of ‘substantial and sustainable strengthening’ needed to dissuade many FOMC members that ‘additional monetary accommodation’ would be needed. It does not alter expectation for the Chairman’s remarks at Friday’s Jackson Hole Summit, nor does it alter our judgment that the FOMC will eventually embark on QE3 in response to persistently high unemployment and greater downside risks in H2 2012. We expect the chairman's remarks to reinforce the key themes from the minutes of the last FOMC meeting, which include absent a significant improvement in the outlook further easing will be warranted, and large-scale asset purchases remain the most effective tool available to the FOMC.”
Nomura: Beige Book and Jackson Hole // FBS Markets Inc.