The Beige Book, which examines comments, opinions, and data from states regarding the state of the economy, has been published. This report, which contains important details about the current state of the economy and the condition of interest rates, does not generally cause volatility in cryptocurrencies. However, it can provide some insights into whether the policy will tighten further.
According to the latest report, most states reported minimal changes in economic activities since the September report. Consumer spending, especially among general retailers and car dealers, was mixed due to differences in prices and product offerings. While some regions reported a slight slowdown in consumer travel, tourism activities continued to improve.
There is a modest ongoing decline in loan demand. While consumer credit quality is generally described as stable or healthy, delinquency rates are historically still low but slightly increasing. Inventory of homes for sale continues to remain low. Manufacturing activities show signs of improvement in many states.
The tightness in the labor market continued to decrease nationwide. Most regions reported slight to moderate increases in overall employment and fewer urgent hiring by firms. Companies are opting for remote work rather than higher wages, reducing signing bonuses or other wage increases, and shifting wages towards performance-based models. Businesses that transfer some of the costs to employees through other fringe benefits are updating their compensation packages to reduce labor costs.
Overall, firms expect prices to increase in the next few quarters, but at a slower rate compared to the previous quarters. Rising fuel costs, wages, and insurance support price increases.
In summary, there is no observable change in the economy that supports cryptocurrencies. This indicates that although there may not be an interest rate hike at the November 1 meeting, the Federal Reserve can continue its hawkish stance to observe the market for one last increase.