Fed’s Beige Book noted that “economic activity continued to increase across all districts, with the pace of growth characterized as slight to modest in most districts.” However, “changes in activity varied greatly by sector.” Employment increased in “almost all Districts” but growth “remained slow”.

Prices rose “modestly” across Districts with “input costs generally increased faster than consumer prices”. Overall, consumer prices across Districts “rose modestly”.

Full report here.

St. Louis Fed President James Bullard said Fed’s policy is “so far so good”. Negative rates are not a good option for the US and he even questioned they aren’t effect where they have been adopted. Fed would instead need to think about the way to play with QE going forward.

Bullard is also comfortable with the current amount of fiscal stimulus, as “in terms of the aggregate resources it seems like we should have enough” to bolster growth until Q1. He’s not expecting a surge in fatality rate of coronavirus, which the US has brought down to accidental injury level. He expected business can cope with the situation and operate safely yet succeed economically.

Fed Governor Lael Brainard said in a speech that “strong support from monetary policy – if combined with additional targeted fiscal support – can turn a K-shaped recovery into a broad-based and inclusive recovery that delivers better outcomes overall.”

However, “premature withdrawal of fiscal support would risk allowing recessionary dynamics to become entrenched, holding back employment and spending, increasing scarring from extended unemployment spells, leading more businesses to shutter, and ultimately harming productive capacity,” she warned.

Full speech here.

Chicago Fed President Charles Evans expected recovery momentum to continue into next year. He’s “reasonably optimistic that unemployment rate will fall to 5.5% by the end of next year. Also, he put “less weight on the adverse economic consequences of a second or third wave” of coronavirus infections. The US seemed to be “powering through this no matter how adverse and horrific those consequences are”.

But he also emphasized the need for fiscal support even though that’s “kind of counter cultural” for monetary policy makers to say so. “This is a public health safety shock. This is a lot about confidence of consumers, households and businesses being able to go out and do commerce. We really need fiscal and public health authorities to be supporting and improving the economic environment,” he added.