MUFG Bank economists analyze the Beige Book released last week and its implications for yields and the US Dollar.
The Fed seems more aware of the impending slowdown
Our natural language sentiment indicator from the writing of the latest Beige Book to describe the US economy shows that, overall, there was a higher share of negative words. This is the most negative sentiment indicator since May. It contrasts with the improving trend in sentiment scores for most of this year. The deterioration in overall sentiment was mainly due to more negative depictions of the economy, consumption, housing and financial situation.
We will certainly have to wait to see some proof in official data, which may take time, but our Beige Book sentiment analysis, Harker’s comments on Friday, and Powell’s more cautious tone on monetary stance tightening tell us They make us more confident that the flow of macroeconomic data should begin to turn more in favor of some downward correction in yields that would also mark a downward turn for the Dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
