Beige Book

Beige Book

A report issued by the Federal Reserve Board two weeks before each FOMC meeting. The report contains anecdotal information on the state of the market and the broader economy in each region of the United States. The Beige Book is compiled from interviews with key market players including Federal Reserve Branch presidents. The Beige Book is considered a window into what the upper managers of the Federal Reserve are thinking, and, as such, it fuels speculation on what the FOMC will decide to do when it meets. The Beige Book may be designed to reduce shock (and the potential for panic) in the market after the Federal Reserve actually announces its decisions.

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Beige Book. Beige book is the colloquial name for the Federal report that is formally titled Summary of Commentary on Current Economic Conditions by Federal Reserve District.

The beige book is prepared eight times per year by the Federal Reserve Board, in preparation for the Federal Open Market Committee (FOMC) meetings, at which its members discuss the state of the economy and determine whether any changes ought to be made to the discount rate and whether the money supply should be tightened or loosened.

The report is based on information provided by each Federal Reserve Bank on its particular district and includes opinion and analysis from economists, bank directors, business people, and other market experts in each district. Economic forecasters use the beige book to predict whether and how the Fed will act after the FOMC meeting.