The Fed shifts on inflation – What does it mean?
The Fed unveiled a revision to its monetary policy, allowing for higher inflation to help support the labor market. We believe this action could keep interest rates low for years.
Using geolocation data from a large sample of mobile devices, we can get real-time data regarding how often people leave their homes, how far they travel and how long they are out. Currently, the data suggests mobility factors are 40% below pre-pandemic levels.
The Dallas Federal Reserve Bank has constructed an index comprised of seven variables, used to give us a real-time view of mobility and engagement among consumers. Using the January – February period as a baseline, we can see how eager consumers have been to leave their homes and engage in commerce. The sharp rebound reflects substantial progress from the April bottom, which we believe will be reflected by a strong economic rebound in the quarter ending September, followed by moderate growth for an extended period.
Source: Dallas Federal Reserve Bank, Bloomberg. Data shows 7-day moving average from January 9, 2020 through August 1, 2020. This chart is being provided as a general source of information for educational purposes only, and is not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy.