An economic calendar is frequently used by investors to track market-moving news, including bank statistics and economic policy decisions. Market-moving news, which are usually released or discussed in a news release, have a very high likelihood of influencing the domestic financial markets shortly thereafter. Investors rely on the information released through the economic calendar to assess the likely impact of any forthcoming announcements regarding interest rates, inflation, unemployment, and balance sheets. They use the calendar to examine long-term trends in domestic lending rates and credit quality. This type of analysis provides them with the information they need to successfully invest in the markets and make informed decisions.
The term “economic calendar” refers to a monthly publication that contains business activity, government data, and other economic-related information released by various governmental agencies. It was first published in 1957. Since then, it has consistently served as a standard reference source for assessing the performance of the U.S. economy. The economic calendar provides an insight into the state of the national economy based on various domestic and international factors. It provides the basic information needed by businesses and individuals to assess their overall capacity to borrow, invest, and save. The economic calendar also informs consumers about upcoming interest rate releases and other monetary indicators.
Data sources for the economic calendar consist of release schedules from the U.S. Federal Reserve, other central banks, and other agencies of similar nature. Experts in the field compile the data from different sources and publish it in the public media on a regular basis. Browsers can access these publications at the Federal Reserve’s website, via publications in books and magazines, or through libraries. Data released by the Fed are widely used by other financial institutions, brokers, and other individuals who are interested in assessing the health of the national economy. Businesses use the data to assess potential risks in the current environment, and investors use the calendar data to determine investment strategies.
To understand how the economic calendar works, it is helpful to have an understanding of the cause and effect relationship between economic events. Events result in reactions, which cause changes in the economy. Economic calendars focus on events occurring within the economy, looking at both the short-term and long-term perspectives. These include indicators such as consumer price Index (CPI) inflation, Gross Domestic Product (GDP) growth, employment, industrial production, and other indicators. As events affect the economy, their effects are recorded in the economic calendar and used to make predictions about the direction of the economy.
An example of an event that can be included in the economic calendar is the passage of the American Recovery and Reinvestment Act (ARRA). ARRA, formally known as the American Tax Rebate Prevention Act, was enacted in August 2021 to stimulate the economy by providing tax credits to businesses that contribute to payroll, hire new workers, or increase capital funds. ARRA is one of the largest programs of its kind and has had a profound impact on many aspects of the U.S. economy, including tax incentives, policy uncertainty, and a marked slowdown in commercial real estate lending.
Another example is the passage of the Medicare Part D prescription drug benefit. This Act was implemented as part of the fiscal stimulus package and is scheduled to end in 2021. The Act provides coverage to 12 additional types of drugs for the treatment of certain conditions. The increases in the availability of prescription drugs and related services resulted in an immediate and substantial increase in overall demand for nurses. As a result, many nursing jobs were created.
As shown above, the passage of the ARRA and the Medicare Part D prescription drug benefit altered the balance of the economy. At the start of the fiscal stimulus program, there were several negative indicators on the economy, including persistent job losses, rising equity costs, declining manufacturing, and declining gross domestic product growth. Over time, these indicators began to improve. These changes, coupled with the improvements in financial markets, led to a gradual increase in consumer spending, which, in turn, helped to raise the employment rate and accelerate the recovery process. Over the course of this process, many observers have identified a number of positive events on the U.S. economy, including an improving housing market, improved cash flow, reduction in consumer debt, improvement in the efficiency of the labor market, and improvement in the quality of the overall economy.
Events on the U.S. economic calendar are a fluid and changeable thing. They may be caused by factors that are beyond our control – for example, unexpected rainfall or snow. They can also be caused by the actions of other countries, such as those in Europe or Japan, or by our own government. Regardless of the cause, these events have had an important impact on our economic outlook and the direction it is moving.