ECONOMIC indicators
GROSS DOMESTIC PRODUCT
Gross Domestic Product or GDP, is a measure of the total value of all the goods and services produced in a country during a specific period of time. It is often used as an indicator of the economic health and growth of a country.
FEDERAL INTEREST RATES
Federal interest rates are the target range set by the Federal Reserve, the central bank of the United States. The Federal Reserve uses interest rates as a tool to influence the money supply and the economic activity in the country. It affects the borrowing and lending costs of banks, businesses, and consumers, as well as the returns on savings and investments. Higher federal interest rates mean that it is more expensive to borrow money and more rewarding to save money. This can reduce the demand for credit and spending, and increase the supply of savings and investment. Higher federal interest rates can also lower inflation, slow down economic growth, and affect the exchange rate of the U.S. Dollar.
CONSUMER PRICE INDEX
Consumer Price Idex or CPI, is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is one of the most popular measures of inflation and deflation. A higher CPI means that the average prices of goods and services in the economy have increased over a period of time. This can indicate an inflationary situation.
INFLATION
Inflation is a general increase of the prices of goods and services in an economy over time. It means that the value of money decreases and the purchasing power of consumers and businesses erodes. It reduces the real income and wealth of people, especially those who have fixed incomes or savings. This means that they can buy fewer goods and services with the same amount of money.
UNEMPLOYMENT
The unemployment indicator is a measure of the percentage of the labor force that is actively looking for work but cannot find a job. It affects the productivity and growth of the economy. When people are unemployed, they are not contributing to the output of the economy. This means that the economy is producing less than its potential.