1.1.1 Economic Indicators
Analysts make judgments about where in the business cycle the economy is by examining various economic indicators. Economic indicators are statistics that summarize different aspects of the economy. The unemployment rate, the Consumer Price Index (CPI), and the gross domestic product (GDP) are all economic indicators. Economic indicators are used to assess the future, current, and historical performance of the economy.
The Federal Reserve System is the central bank of the United States. The Federal Reserve, commonly known as “the Fed,” is made up of the 12 Federal Reserve branch banks, all national banks, state-chartered commercial banks, and some trust companies. The Fed uses economic indicators to help make decisions about mo