Money and Interest Rates

Economic Indicators to Consider for Making a Large Purchase There are several things to consider before making a large purchase such as buying a house.   If I were going to purchase a house in today's economy there are various economic indicators I would consider. There are many factors that shift economic indicators, and new home sales is a primary example of this. New home sales help the economy to thrive. When people such as me are purchasing new homes, it shows financial improvement for consumers as well as the economy.
If economic indicators are dependent on new home sales, but people are unwilling to purchase new homes while the indicators are weak, we're left with something of a chicken and egg problem. Either people need to start buying homes so the economic indicators increase, or the economic indicators need to increase so people start buying homes. Fortunately, there is a way out of this dilemma. While new home sales are a key metric for economic indicators, there are many others. These include things like consumer spending, the availability of credit, and the health of the stock market. As these parts of the economy recover, so will the indicators. (Ashton, 2011).
Primary Tools Used by the Federal Reserve System to Change Money Supply
The Federal Reserve System was created by Congress in 1913 to serve as the central bank of the United States and to provide the nation with a safer, more flexible and stable monetary and financial system. Over the years, its role in banking and the economy has expanded, but its focus has remained the same. Today, the Federal Reserve’s three functions are to provide and maintain an effective and efficient payments system, to supervise and regulate banking operations, and to conduct the nation's monetary policy. Although all three of these roles are important in maintaining a stable economy, monetary policy is the most visible to many citizens. Monetary policy is the strategic actions taken by the Federal Reserve to...