The Fed is expected to announce a 50-bps reduction in interest rates following the March 20th FOMC meeting. The National Association of Realtors revised January existing home sales data as a software glitch led to an underreporting of sales. The revised numbers suggest the recent trend in existing home sales is in line with continued strength shown in new home sales and housing starts. The Fed's Beige Book, prepared in advance of the March 20th FOMC meeting, indicated that the economy is sluggish in most Fed districts and quite weak in a few. Consumer spending was reported to be higher in January and February for nearly all districts with auto sales reported as steady.
Manufacturing remains on the decline in most districts, though a few noted some improvement.
Labor markets remain tight, though about half of the districts reported signs of loosening. Wage pressures reportedly eased but benefit costs were up. Price pressures are seen as contained outside of energy. Bank lending is seen as sluggish with many banks tightening lending standards. As expected, the non-manufacturing NAPM index rose to 51.7 in February from 50.1 in January.