With inflation at an forty-year high, the stock market in a bear market and likely heading to a recession, and with the U.S. Federal Reserve consistently increasing interest rates, there has never been a more important time in the last 40 years to pay attention to the economy. But unsure where to go for trusted and easily accessible data on the economy?
The Federal Reserve Economic Data (FRED) is a public database online that is a compilation of economic data from around the world. There is a treasure trove of valuable information on FRED, but the Macro Snapshot of Key Economic Indicators provides quick and insightful information on the current state of the economy by reviewing the most important economic data points;
- Real Gross Domestic Product (GDP) – the value (inflation adjusted) of goods and services produced by labor and property in the United States
- Unemployment Rate – the number of unemployed as a percentage of the labor force
- Personal Consumption Expenditures (PCE) Inflation – the change in prices of goods and services purchased by consumers.
- Effective Federal Funds Rate – the interest rate banks charge each other for overnight loans.
The U.S. Federal Reserve has recently raised the effective federal funds rate with the goal of “cooling off” the economy that is supposed to result in people spending less, which ultimately influences the decrease in inflation. The next six months will be interesting as inflation keeps rising while the stock market and GDP continues to fall.
Erik Angus 