And no, it’s not the beginning of a joke.
The Beige Book of the Federal Reserve analyzes the economy of the United States, through the eyes of the central bank. In this way, the following conclusion has been reached about the year 2014: employment, Christmas spending and cheap gasoline are very determinant factors for the economic impulse, or what is the same, growth.
The combination of the lower oil prices, together with the higher income income in households through employment, allow citizens to have a greater purchasing power, which they reflect through the increase in spending through consumption (especially in the Christmas season).
Or, at least, it is one of the results that have been extracted from the radiography of the 12 regions supervised by the Federal Reserve.
For example, the unemployment rate in the United States stood at 5.8% in November, its lowest level in about 7 years. It coincides with the price level of gasoline, with the average price in the same month of 2.8 dollars per gallon, its lowest price in 4 years.
And how has the economic impulse fostered by these factors influenced prices and wage inflation? Well, according to the Beige Book, they have remained moderate, as well as labor costs. Likewise, most of the areas studied have experienced a boost in their industrial activity.
We want to know your opinion. Do you think the Federal Reserve is right or are they just coincidences? Tell us!
Source: The Economist