Federal Reserve Beige Book Comments – LPL Financial

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Federal Reserve Beige Book Comments – LPL Financial
<a href="https://pixabay.com/users/skeeze/">skeeze</a> / Pixabay

Below are comments about the Federal Reserve Beige Book released Wednesday, June 3 by John Canally, Chief Economic Strategist for LPL Financial.

Federal Reserve Beige Book Comments

  • Barometer +92 in Mar vs +47 in Apr. Highest reading since Dec ’14, pre Q1 distortions (Port, weather, etc)
  • Weather (16 in Jun vs 71 in Apr), oil (32 vs 46)  and ports (16 vs 16) faded as concerns.
  • … while dollar/strong dollar (30 vs 31) remained as a key concern
  • 112 mentions of “inflation words” – labor market type words (wage/skilled/shortage/widespread/rising vs 106 in April and 98 in 2014 and jusrt 80 in ’11-13
    • Takeaway is that slack in economy is pushing up wages and prices
  • Comment on wages prices:
    • June: “Wages rose slightly. Prices were stable or ticked up” ….
    • April “Districts noted modest upward pressure on wages and overall prices”

 

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LPL was founded with a pioneering vision: to help entrepreneurial financial advisors establish successful businesses through which they could offer truly independent financial guidance and advice. Today we provide an integrated platform of proprietary technology, brokerage, and investment advisory services to over 13,500 financial advisors as the nation’s largest independent broker/dealer,* making us a leading distributor of financial products in the United States. In addition, we support over 4,000 financial advisors with clearing services, advisory platform, and technology solutions. Even as our firm has grown over the years, we remain singularly focused on helping financial advisors to manage the complexity of their investment practices so they can better serve their clients in achieving important financial goals. And, because we do not offer proprietary products, LPL enables the independent financial advisors, banks, and credit unions with whom we partner to offer their clients truly objective, conflict-free advice. Our open-architecture platform provides our customers with access to thousands of commission, fee-based, cash, and money market products manufactured by hundreds of third-party product sponsors.

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