Retail Sales, Housing Starts and FED Fund Rates....

Based on data collected from the Federal Reserve Economic Data (FRED) website. This visualisation was created using R. The data was converted and normalised. The first graph represents data from 2000 and second graph represents data from 2018.

When considering the key US economic indicators the following trends from Retail Sales, Housing Starts and FED fund rates seem to move in different directions.

Retail sales have shown a significant increase over the past few years, with a notable uptick in the aftermath of the COVID-19 pandemic. The retail sector has benefited from the increased consumer spending due to stimulus payments, rising incomes, and low-interest rates. This trend indicates that consumer confidence remains strong, and the US economy is recovering from the pandemic.

Housing Starts: In contrast to retail sales, the housing market has experienced a slowdown in housing starts. Despite the historically low mortgage rates, the demand for housing has not kept up with the supply, leading to lower construction activity. This trend can be attributed to a variety of factors, including a shortage of skilled labor and materials, high land costs, and the demographic shift towards urbanisation.

Federal Fund Rates: The Federal Reserve has increased the Federal Fund rates over the past few years to control inflation and maintain financial stability. This move reflects the Fed's confidence in the strength of the US economy and the belief that the inflationary pressures are temporary. However, the increased rates may lead to higher borrowing costs for businesses and consumers, which may dampen the economic growth in the short term.

Overall, the US economy is on a path to recovery, but the mixed trends in key economic indicators suggest that the recovery is uneven. While retail sales indicate that the consumer confidence is strong, the housing market slowdown may limit the potential economic growth. The increase in Federal Fund rates may pose challenges for businesses and consumers, but it also reflects the Fed's confidence in the strength of the economy. As we move forward, it will be important to monitor these trends and make necessary adjustments to ensure sustainable economic growth.