Industrial Production Index
Industrial production improved in the latest report, due largely to better output of automobiles and parts following the settlement of the GM strike. Taking out automobiles and parts, the data showed a 0.5% increase. This should begin to show up in the ISM manufacturing sector data for new orders, which weakened in late 2019.
Effective Fed Funds Rate
The chart above illustrates the about-face at the Federal Reserve, which began to lower rates in 2019 in response to weakening industrial activity and GDP growth, as well as concerns over global trade, particularly with regard to China, as well as the EU block and Brexit.
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