Highlights of the Fed's Beige Book released Sept 2, 2015:

  • 11 districts reported moderate to modest growth
  • 6 districts reported 'moderate' growth, 5 reported modest expansion, 1 'only slight growth'
  • Reports of higher wages especially in New York, Cleveland, St Louis and San Francisco
  • Tighter jobs market pushing up wages slightly in some industries and occupations
  • Dallas Fed said outlook for loan demand more cautious due to low oil and China worries
  • Credit quality improving in most districts
  • District reports on manufacturing were mostly positive
  • The Boston, Philadelphia, Cleveland, Richmond, and Dallas Districts cited the strong dollar as a weakening influence on manufacturing
  • Across all Districts, input and selling prices were reported to be stable or up only slightly.
  • Prepared by the Boston Fed
  • Full text

In the previous Beige Book it noted that all 12 Fed districts reported expanded activity. Three grew at a modest pace, 7 grew at a moderate pace and two were "stable or improving." It also noted that the strong dollar was hurting spending in some districts.

The main concern for the Fed is whether or not inflation and wages are rising. There is nothing in this report to indicate wage/inflation pressures.

This is the reaction from CRT Capital:

"All seems to be steady as she goes with, maybe, the ongoing low inflation and slightly better jobs story," CRT strategist David Ader writes in note. "We don't see this as tweaking Fed odds very much and, looking at the market's reaction, no one else does either"