The Beige Book prepared for the September 20-21 FOMC meeting indicates that there is no double-dip recession and that the economy continues to expand, although at a “modest pace.” Consumer spending is up somewhat but largely on motor vehicle sales. Manufacturing is growing but at a slower pace. Housing is still flat and depressed.Labor markets were generally steady, although some Districts reported modest employment growth. On the inflation front, the majority of Districts reported fewer price pressures, but input costs continued to rise in select industries. The recent federal debt ceiling legislative fiasco and resulting impact on financial markets did affect the outlook.
I do not see reasons in the Beige Book for QE3.
Elsewhere:
Australian employers slashed 10k jobs in August
Something that might hit the local banking market in Romania: LIBOR inquiry gets serious
And something that brings memories of Lehman Brothers and Fortis right before you know….: BNP fights fears of funding
Florin Citu 