US Fed speechmaking numbers could be used as a guide to economic conditions. Fed decision makers have significantly reduced the frequency of their speaking engagements over the course of the current economic downturn. The chart at (VIEW LINK) compiled by E.I.M. Capital Managers shows the number of speeches made each year since 2001 by Fed officials and the extent to which U.S. GDP growth was above or below average at the time. Officials are more likely to be out talking when conditions are improving and less likely when conditions are on the slide. In 2012, the number of speeches dropped to an all time low. Adjusted for the time remaining in 2013, there has been a modest rise in Fed speechmaking this year. Putting any other indicator aside, the frequency of Fed speechmaking so far this year suggests conditions are improving.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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