Key economic indicators that the Fed watches in order to anticipate a change in the Fed's monetary policy and to access the expected impact on short-term interest rates:
- Non-farm payrolls
- Industrial production
- Housing starts
- Motor vehicle sales
- Durable good orders
- National Association of Purchasing Management supplier deliveries
- Commodity prices
Source: The Big Picture
In implementing monetary policy, the Fed uses the following interest rate policy tools:
- Open market operations
- Discount rate
- Bank reserve requirements
- Verbal persuasion to influence how bankers supply credit to businesses and consumers
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