Original subtitles

the banks of course that has a knock on effect on the

economics growth. So how can we control these orders? Um of

means a higher number of durable goods therefore shows

going to be you know you're going to be a part of. And so

yeah that's it for this lesson. I'm going to see you guys in

it comes to actually find in the data. I'm going to try my

conclude on everything that we've learned right now. The

perhaps there's a lot of steel inside there as well with that

investment into durable goods by the businesses. So that

much the entire population in the US in the UK everywhere

as you can tell it's very influential because it affects

but most of the goods are always going to be imported

interest rates, loans, credits and etcetera. So just to

best to always add links into the discord group that we're

around the world and then of course these indicators are the

main two that we they look at so 100% I would recommend

participants in the FOMC meetings are able to evaluate

remember we always come back to the the idea of monetary policy

Now with these two indicators of data and statistics the

most of the goods or it depends really what country you're in

going in the future so the direct effect that it's

the overnight lending and borrowing interest rate between

before any FOMC meetings you take a look at this data when

and fiscal policies and how it directly impacts the economy

what inflation is like at the time and accordingly suggest

materials to you and then loans by banks may have too high of

Fed's funds rate is discussed eight times by the FOMC meeting

stock I would or recommend to always look at these durable

this naturally has a knock on effect on different types of

consumers of the banks and of course that's you know pretty

course you can use taxes and tariffs on the imports because

interest rate so businesses are discouraged to spend now

especially with the stock prices and where you see it

from commodity rich areas those that actually export all the

goods orders because it's going to be so influential

future orders so it's perfect for understanding which stocks

So we know how productive the factories will be. How many

the Fed fund rate as per the data. As discussed previously

activity at the time. Timing long term particularly when

to pick out hence why stocks are so affected by these

reports if you're looking at certain stocks where they deal

with you know a lot of production a lot of machinery

we're looking you know in the future market since they can be

particularly supply chains. This is released two times per

going to have tax cuts or loose monetary policies encourages

data analysis. So, the second indicator that they mainly look

transportation sector because of random high influxes

particular that last more than three years. So what that

sometimes. So how can it be used? It measures economic

FX three, whatever it may be, but just to let you guys know,

includes is machinery, equipment, steel, tanks and

people are are going to be employed and thus the economic

growth. These reports are all orders in present and future.

etcetera. The report excludes defense and transport sec

at is the durable goods orders. So, a monthly survey by the US

consumption expenditures. And they use it instead because

core CPI index but this one right here is the personal

going to be more to that as well but again some extra

Census Bureau that measures industrial activity,

heard of this because CPI is very well known and of course

month. So, the goods that we're looking at are the goods in

fluctuations seen in the general CPI data released. It's

this is the main one that they look at, especially in their

be easily accessed, you know, whether it be Forex factory or

a bare indication of the inflation trends. Now this can

an accurate understanding of how much inflation there

own research and look more into that then the energy market

research will never hurt but you know these three are the

prefer to use the PCE index. Uh most of you would not have even

mainly consists of oil, gas and natural gas. Of course there's

it's not prone to any short term inflations. Uh

beef of course there's many other sectors as well but these

actually is in the market so to look at that again the food

main three that we even look at especially on the charts

of the most essential parts that they look at just to get

particularly oil. Now what do the Fed use instead? The Fed

market the main three that they would look at is wheat pork and

are just a few that are brought up of course you can do your

core inflation rate as it's called but this is really one

already previous previously gone through CPI and you know a

the food and energy sector is way too volatile at that time.

This can create misleading results. Now understand we've

For example the effect of natural disasters on crops so

an accurate reading of underlying inflation trends.

range. Anyways the first one is the core inflation rate. So the

Food and energy products are way too volatile for this to be

this into this lesson in a way. So this has a knock on effect

they use to choose the appropriate rate change. Or

included. They change so quickly that they can throw off

co-inflation rate is the price change of goods and services

deflationary condition conditions already built into

course you've got the inflationary and the

minus food and energy. So why is food and energy excluded?

on the economy but first we will discuss the indicators

understanding the requirement that the Fed actually imposes

rate what does that do? That in increases borrowing. If they

months and the years just to have an understanding of where

they can actually set this rate. Uh obviously

federal funds rate. Now they do this with their analysis from

upon every single bank to keep and of course that's where they

can determine the Fed funds rate. Now if they lower the

increase the rate that means decrease borrowing. So of

all the data that they accumulate throughout the

Yes, welcome everyone to the next video. So, moving on from

Now when the FOMC meets eight times a year they discuss the

the next lesson. Alright take care.

the last one where we look at the federal funds rate. We're

actually going to be looking at the indicators that you that

they use during the FOMC meetings whenever they meet.