Overview

• Fed Beige Book, compiled through August 25, notes consumer spending is flat or declining across districts because pay increases have not kept up with inflation.
• Employment conditions were described as largely unchanged, with seven districts reporting cautious hiring and some districts noting more layoffs.
• Financial markets increasingly expect a policy rate cut at the September 16–17 FOMC meeting, which would be the first reduction in six meetings.
• Tokyo’s Nikkei 225 rose 641.38 points to close at 42,580.27 on September 4, with semiconductor shares leading gains on spillover from U.S. tech strength.
• The yen traded in the upper ¥148 per dollar range—around ¥148.73–75 late on September 3 and ¥148.37–38 late on September 4—after a recent slide tied to political uncertainty in Japan and reduced odds of a near-term BOJ hike.