| Activity |
|
Reason |
|
| Consumer price
index rises. |
 |
Indicates rising
inflation. |
|
|
| Durable goods
orders rise |
|
Pickup in business
activity usually leads to increased credit demand. |
|
|
| Gross National
Product |
 |
Reflects a slowing
economy. Fed may loosen money supply prompting a decline in
interest . |
|
|
| Housing starts rise
|
|
Show growth in
economy and increased credit demand. Fed is less accommodating
and may attempt tightening by allowing rates to rise. |
|
|
| Industrial
Production Falls |
|
Indicates slowing
economic growth Fed may be more accommodating by allowing
interest rates to fall to stimulate the economy. |
|
|
| Inventories up
|
|
Indicates slowing
economy since |
|
|
| Leading indicators
up |
|
Signals strength in
economy leading to greater credit demand. |
|
|
| Oil Prices Fall
|
|
Reduces upward
pressure on interest rates, thereby enhancing prices of debt
securities. |
|
|
| Personal income
rises |
|
The higher one's
income, the more is consumed prompting increased demand and
higher prices for consumer goods. |
|
|
| Precious metals
prices fall. |
|
Reflects decreased
inflation. Demand for inflation hedges abates. |
|
|
| Producer price
index rises. |
|
Indicates rising
inflation. demand for goods rises as well as prices. Investors
require higher rates of return. |
|
|
| Retail Sales rise.
|
|
Indicates stronger
economic growth. Fed have to tighten. |
|
|
| Unemployment rises.
|
|
Indicates slow
economic growth, Fed may ease credit, causing rates to drop |
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