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the banks of course that has a
knock on effect on the
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economics growth. So how can we
control these orders? Um of
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means a higher number of
durable goods therefore shows
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going to be you know you're
going to be a part of. And so
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yeah that's it for this lesson.
I'm going to see you guys in
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it comes to actually find in
the data. I'm going to try my
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conclude on everything that
we've learned right now. The
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perhaps there's a lot of steel
inside there as well with that
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investment into durable goods
by the businesses. So that
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much the entire population in
the US in the UK everywhere
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as you can tell it's very
influential because it affects
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but most of the goods are
always going to be imported
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interest rates, loans, credits
and etcetera. So just to
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best to always add links into
the discord group that we're
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around the world and then of
course these indicators are the
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main two that we they look at
so 100% I would recommend
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participants in the FOMC
meetings are able to evaluate
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remember we always come back to
the the idea of monetary policy
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Now with these two indicators
of data and statistics the
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most of the goods or it depends
really what country you're in
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going in the future so the
direct effect that it's
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the overnight lending and
borrowing interest rate between
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before any FOMC meetings you
take a look at this data when
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and fiscal policies and how it
directly impacts the economy
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what inflation is like at the
time and accordingly suggest
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materials to you and then loans
by banks may have too high of
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Fed's funds rate is discussed
eight times by the FOMC meeting
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stock I would or recommend to
always look at these durable
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this naturally has a knock on
effect on different types of
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consumers of the banks and of
course that's you know pretty
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course you can use taxes and
tariffs on the imports because
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interest rate so businesses are
discouraged to spend now
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especially with the stock
prices and where you see it
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from commodity rich areas those
that actually export all the
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goods orders because it's
going to be so influential
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future orders so it's perfect
for understanding which stocks
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So we know how productive the
factories will be. How many
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the Fed fund rate as per the
data. As discussed previously
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activity at the time. Timing
long term particularly when
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to pick out hence why stocks
are so affected by these
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reports if you're looking at
certain stocks where they deal
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with you know a lot of
production a lot of machinery
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we're looking you know in the
future market since they can be
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particularly supply chains.
This is released two times per
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going to have tax cuts or loose
monetary policies encourages
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data analysis. So, the second
indicator that they mainly look
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transportation sector because
of random high influxes
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particular that last more than
three years. So what that
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sometimes. So how can it be
used? It measures economic
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FX three, whatever it may be,
but just to let you guys know,
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includes is machinery,
equipment, steel, tanks and
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people are are going to be
employed and thus the economic
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growth. These reports are all
orders in present and future.
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etcetera. The report excludes
defense and transport sec
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at is the durable goods orders.
So, a monthly survey by the US
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consumption expenditures. And
they use it instead because
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core CPI index but this one
right here is the personal
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going to be more to that as
well but again some extra
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Census Bureau that measures
industrial activity,
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heard of this because CPI is
very well known and of course
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month. So, the goods that we're
looking at are the goods in
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fluctuations seen in the
general CPI data released. It's
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this is the main one that they
look at, especially in their
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be easily accessed, you know,
whether it be Forex factory or
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a bare indication of the
inflation trends. Now this can
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an accurate understanding of
how much inflation there
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own research and look more into
that then the energy market
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research will never hurt but
you know these three are the
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prefer to use the PCE index. Uh
most of you would not have even
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mainly consists of oil, gas and
natural gas. Of course there's
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it's not prone to any short
term inflations. Uh
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beef of course there's many
other sectors as well but these
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actually is in the market so to
look at that again the food
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main three that we even look at
especially on the charts
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of the most essential parts
that they look at just to get
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particularly oil. Now what do
the Fed use instead? The Fed
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market the main three that they
would look at is wheat pork and
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are just a few that are brought
up of course you can do your
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core inflation rate as it's
called but this is really one
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already previous previously
gone through CPI and you know a
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the food and energy sector is
way too volatile at that time.
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This can create misleading
results. Now understand we've
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For example the effect of
natural disasters on crops so
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an accurate reading of
underlying inflation trends.
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range. Anyways the first one is
the core inflation rate. So the
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Food and energy products are
way too volatile for this to be
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this into this lesson in a way.
So this has a knock on effect
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they use to choose the
appropriate rate change. Or
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included. They change so
quickly that they can throw off
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co-inflation rate is the price
change of goods and services
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deflationary condition
conditions already built into
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course you've got the
inflationary and the
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minus food and energy. So why
is food and energy excluded?
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on the economy but first we
will discuss the indicators
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understanding the requirement
that the Fed actually imposes
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rate what does that do? That in
increases borrowing. If they
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months and the years just to
have an understanding of where
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they can actually set this
rate. Uh obviously
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federal funds rate. Now they do
this with their analysis from
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upon every single bank to keep
and of course that's where they
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can determine the Fed funds
rate. Now if they lower the
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increase the rate that means
decrease borrowing. So of
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all the data that they
accumulate throughout the
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Yes, welcome everyone to the
next video. So, moving on from
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Now when the FOMC meets eight
times a year they discuss the
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the next lesson. Alright take
care.
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the last one where we look at
the federal funds rate. We're
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actually going to be looking at
the indicators that you that
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they use during the FOMC
meetings whenever they meet.
10101
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