Beige Buck and the FED
The Beige Book showed widespread downward pressure on the US economy with the only notable area of growth being tourism, a direct result of the weak dollar.
The dismal results are also unlikely to motivate the FED to cut 50pbs instead of 25bps (80% chance of 25bps currently) as it becomes increasingly clear the FED is pushing on string at current low levels. There is virtually no evidence that rate cuts of 300bps since last summer have had a positive impact on the economy or on credit markets.
Indeed, the FED might keep its powder dry going into the summer and focus instead on prompting banks to take their medicine so when the 300bps kicks in, the banks will have the wherewithal to jump on board.