Beige Book: no indication of a pick-up in price pressure - Nomura

Analysts at Nomura noted that the Beige Book prepared for the 31 Oct-1 Nov FOMC meeting reported growth pace that is “split between modest and moderate,” but no indication of a pick-up in price pressure. 

Key Quotes:

"As expected, Richmond, Atlanta and Dallas Feds reported major hurricane disruptions in economic activity. The labor market remained tight, with labor scarcity reported in some industries (e.g., construction and manufacturing). However, the majority of the Fed Districts reported only modest to moderate wage pressures. On prices, the upward pressure appears to have been modest with limited pass-through.

Many business surveys indicated increases in input costs, which in part were driven by supply chain disruptions from hurricanes, but prices of finished goods at factory gates did not pick up. Considering recent remarks by regional Fed presidents and Chair Yellen, while acknowledging downside risks to inflation, the FOMC participants still expect tighter labor markets to drive up wages and eventually, inflation."