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.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhU6taFX965j0GqBuR89H3VZSpkO19DSqkMmNQPWUw6IxpQSQtuSAEr8QN3_BQScdhNLUZPCeki5d6D2O8QTAigWAZzlEuGOOUDxl4q-SHWzrhXUFq6s06x0wZ-7eydYgXdNJwGINLgbrA/s320/Furniture+vs.+Income+-+Long-Term.jpg)
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.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHEbjXrO-pmLxwpg2ATVMXDwQlZfel0wtn9AEwGH2FXmdHgzPZX_8QF9UeJ0Ndpngpvzo803hScMRjYd4C8tr45Wh2cz5g_nq9T8Qj6yKa37CRf42jterXRKCXpank4QUexL_5dIqdfM8/s320/Furniture+vs.+Income+-+Short-Term.jpg)
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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