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The Fed isn't quite sure what threshold it should be using to determine when to raise interest rates. Can't say I blame them. I therefore thought I'd offer some free (deflationary) advice.

Furniture sales and new home sales go hand in hand. Right? So simply raise rates when furniture store sales (as a percentage of disposable personal income) reach "normal" levels again. What could be easier? Transparent. Clean. Consistent.


Click to enlarge.

Let's zoom in on that recent trend in red and try to estimate how long it will take to get back to normal.


Click to enlarge.

The solution is clear. Raise rates just this side of never. Be just like Japan!

See Also:
Trend Line Disclaimer
Sarcasm Disclaimer

Source Data:
St. Louis Fed: Custom Chart
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Posted by: Tukiyooo Free Advice for Fed: Raise Rates When Furniture Sales Fully Recover Updated at : 2:17 PM
Thursday, February 20, 2014

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