Here are some key interest rate change indicators for your information.
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Things that may raise interest rates.
Consumer Price Index Rises
Indicates rising inflation.
Durable Goods Orders Rise
Pickup in business activity usually leads to increased credit demand.
Housing Starts Rise
Shows growth in economy and increased credit demand. Fed tightens money supply by
raising rates.
Leading Indicators Up
Signals strength in the economy leading to greater credit demand.
Personal Income Rises
The higher one’s income, the more consumed, prompting higher prices of debt securities.
Producer Price Index Rises
Indicates rising inflation. Demand for, and prices of, goods rises.
Retail Sales Fall
Indicates stronger economic growth. Fed may tighten money supply.
What will lower interest rates?
hat May Raise Interest Rates
Gross National Product Falls
Reflect a slowing national economy. Fed loosens money supply by lowering rates.
Industrial Production Falls
Indicates slowing economic growth. Fed loosens money supply by lowering rates.
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Inventories Up
Indicates a slowing economy since sales are not keeping up with production.
Oil Prices Fall
Reduces upward pressure on interest rates, thereby enhancing prices of debt securities.
Precious Metal Prices Fall
Reflects decreased inflation. Demand for inflation hedges falls.
Unemployment Rises
Indicates stronger economic growth. Fed may tighten money supply.
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