By Evelina M. Tainer, Chief Economist, Econoday
8/10/01

The Fed's Beige Book is a compilation of anecdotal evidence from the Federal Reserve's 12 district banks. The news is not quantitative but qualitative. It is a sampling of evidence from retailers, manufacturers, real estate and banking. The most recent Beige Book, which included information through July 30, showed that the economy remained anemic across the country. This helped lift bond prices since it reassured investors that the Fed will almost certainly reduce rates again at the next FOMC meeting on August 21. In contrast, equity investors were devastated since it put out further into the future the prospects for improving profit margins.