Free Advice for Fed: Raise Rates When Furniture Sales Fully Recover

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.


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


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

See Also:
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Source Data:
St. Louis Fed: Custom Chart