Analyst: The Fed's Beige Book reinforces interest rate cut expectations.

On October 16, the Fed's Beige Book reinforced expectations for further rate cuts, leading to a decline in the dollar. The report indicated that economic growth is slowing, the labor market remains weak, and input prices are rising. Evercore ISI analysts stated in a report that the signals regarding tariff transmission are mixed; some businesses report that sales prices remain stable, while others report rising import costs. Overall, the Beige Book “strengthened the view that the economic outlook has changed little since the Fed's meeting in September.” They noted that this suggests the Fed may cut rates by 25 basis points later this month and may cut further in December. ( Jin10 )