Beige Book: US aggressive trade policies to be a concern? - Nomura

Analysts at Nomura explained that the Beige Book prepared for the 1-2 May FOMC meeting will likely provide useful context for the business community’s reaction to the Trump administration’s recent aggressive trade policy announcements.

Key Quotes:

"The minutes for the March meeting indicated that some district contacts, particularly those in the agricultural sector, reported angst about the possibility of an escalating trade confrontation.

In addition, anecdotal evidence in the Beige Book could shed further light on regional wage pressures as various industries, particularly construction, grapple with ongoing labor shortages.

Finally, given the softer-than-expected consumer spending growth thus far in Q1, anecdotal evidence on consumer activities could provide guidance on whether the slowdown is merely transitory."