Beige book is a book that contains reports on economic conditions in the 12 districts of The FED. For your information, The FED is the central bank of the United States of America. In carrying out its activities of regulating and supervising the economy of the United States of America, the Fed created 12 branch offices. Later, all branch offices will periodically report on the economic conditions in their work areas.
All these reports were collected into one and referred to as the Beige Book. In addition to reports on economic conditions, each branch office of the Fed also reports business prospects in each district with measurable data. This opens up opportunities for investors to explore investment opportunities in an effort to create jobs.
If you check the Beige Book, which is provided free of charge by The FED’s official website, you can see that there are several important factors reported in it. The first factor is economic activity, then employment conditions and employee salaries to the prices of goods and services. All of these factors are very important in efforts to keep the economy stable and continue to grow higher than before.
How to collect information in Beige Book
In order to collect data in the beige book, The FED’s efforts in each district were made to ask the opinion of company management in the banking sector regarding local economic conditions. In addition, The FED in each district is also actively conducting interviews with business actors and economic observers so that it is known how the economic conditions in each district where The FED branch is located.
Beige book link with news
I think Beige book is very worthy to be made a news. But unfortunately the popular site that displays the economic calendar never displays the information contained in the Beige Book. We need to download the Beige Book ourselves which is regularly provided by The FED on its official website to find out how the situation and economic conditions in every district in the United States are.
For example, one day there is information in the Beige Book that there has been a decline in the price of goods and many layoffs have sprung up by the company to its employees. Then the central FED will definitely take various steps to prevent the situation from spreading further. But usually the market will immediately respond with the weakening of the US Dollar against other major currencies.
But the reports in the Beige Book are arguably reports that are not made in real time. What this means is that when the Beige Book published today which said the economic condition was not good, then the condition had probably occurred a few days or a few weeks earlier. So when we read the current Beige Book report, it means that we are reading past economic reports and are not worthy of being used as a reference for trading.
Reviews on Beige Book
If we look at it in terms of terms, it refers to information published by the Federal Reserve regarding the current economic conditions of the twelve component districts, which are collected from various sources and also include research reports as well as interviews with business people, all of which are regional in nature and prospects are based on quantitative information, so that it can create opportunities to understand dynamics as well as be able to identify emerging trends in an economy, basically every Federal Reserve will collect data on anecdotal information through financial reports from branch banks that are qualitative and quantitative from these conditions will provide a complete and structured comparison. well which can help in assessing the overall national economic prospects because it is taken from information based on observations and indications that are systematically carried out by the member feds. fish a logical and intuitive conclusion from raw data that has been collected from 12 districts and the beige Book is published 8 times a year precisely at the time of every meeting of the Federal Open Market committee but the information data is not fully disclosed to the public the information is only an outline only attached from the FOMC and we can see on the News calendar.
In terms of definition, the Beige Book is a collection of summaries of various reports, interviews, and also information from business contractors, economists, financial experts all collected in one place by the Federal Reserve at the banks in each district, in this report formally known as Commentary On Current Economic Conditions, which presents a response to the state of several aspects of the economy such as factories, retail sales, consumption, banking, labor market, real estate, agriculture and energy as well as natural resources, all of these points are collected and then summarized in the form of a report. Beige Book so that it can provide detailed information by sector of the region in terms of its economic development, all of which will be used to evaluate the economic efficiency of a region in the United States from which it can predict decisions on monetary policy by the Federal Open Market Committee in the future such as this if at any time there is speculation over the possibility of changes in interest rates so that it can be conditioned properly.
The application of the beige book system aims to provide a broad overview of the economy collected from the results of variables and indicators in which there are several components such as the labor wage market, labor wages as well as prices, retail activities and e-commerce on Manufacturing output, from the appendix With this data, an investor can see future projections by predicting trends and anticipating changes over the next few months so that they can take action accurately and on target, we need to know that the Beige Book itself is not information that will directly have a direct impact and influence. large enough to market movements, but only provides information on Periodic numbers and statistical data that has been released by the Federal and Regional banks from here a cycle is formed on which data is collected and then released every six weeks before and at the time of the FOMC findings so that updated data will always appear from a number of statistical series throughout the year for various economic aspects of the country.
From the data attachment above, we can draw a conclusion that the beige book is a collection of data that contains forward-looking comments that aim to make it easier to draw conclusions that have been presented according to factual and real reports so that they can provide investors with a perspective on the economic health of the owners. business, then collects all the different reports which are then processed into one component using a quantitative measurement tool, so that it is used as an indicator that can provide updated and complete reports based on geographic areas in each industry, because the data will be used as a basis for each industry. Beige book report which will be published in general in the form of fundamental news so that it affects financial movements starting from the dollar currency so that it has an influence on currencies globally.