Beige Book Reads Like Goldilocks

Financial institutions again said residential mortgage lending had tapered off, but commercial lending picked up in several districts. Agricultural conditions generally improved.

Several districts said labor markets were tight, and some spoke of a shortage of skilled workers. Wage pressures were in check in some districts, but higher in others.

The Boston, Philadelphia, Richmond, Minneapolis and Dallas reports characterized labor markets as generally tight, particularly for skilled workers, while the remaining districts said job growth was steady to stronger. Half of the districts mentioned labor shortages, particularly for professional, scientific and other technical workers.

Though the majority of Fed districts characterized price pressures as contained, input costs rose in some areas and a few reports mentioned increased instances of businesses passing on costs to customers.

On Wednesday, the minutes from the Fed's Sept. 20 gathering showed that most central bank officials felt the nation's economic activity had been decelerating in recent months, giving them the confidence to leave rates unchanged for the second consecutive meeting.

The latest beige book was prepared at the Federal Reserve Bank of Richmond and was based on information collected before Oct. 2. The beige book summarizes comments from Fed contacts like businesses, economists and market experts, and it isn't meant to serve as a commentary on the views of policymakers.

However, the report does provide guidance for some of the issues the Fed will talk about later this month when it meets to discuss rates. Following a two-year tightening campaign, the Fed has kept its fed funds target at 5.25% since June.