Glossary

Key macro economics terms used across TrackTheDollar dashboards.

B

Breakeven Inflation

The difference between the yield on a nominal Treasury bond and a TIPS (Treasury Inflation-Protected Security) of the same maturity. It represents the market's expectation for average annual inflation over that period.

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C

CPI (Consumer Price Index)

A measure of the average change over time in the prices paid by urban consumers for a basket of goods and services. Published monthly by the Bureau of Labor Statistics.

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Core CPI

CPI excluding volatile food and energy prices. Provides a cleaner signal of underlying inflation trends.

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D

Debt-to-GDP Ratio

Total national debt divided by gross domestic product. A key measure of a country's ability to service its debt. The U.S. ratio has exceeded 120% of GDP.

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DXY / Dollar Index

A measure of the value of the U.S. dollar relative to a basket of foreign currencies. The Trade-Weighted Broad Dollar Index (DTWEXBGS) from the Federal Reserve is the most comprehensive version.

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F

Fed Balance Sheet

The total assets held by the Federal Reserve, including Treasury securities and mortgage-backed securities. Expands during quantitative easing (QE) and contracts during quantitative tightening (QT).

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Fed Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight on an uncollateralized basis. Set by the Federal Open Market Committee (FOMC).

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Fiscal Deficit

The difference between government revenue and spending in a fiscal year. When spending exceeds revenue, the gap is funded by issuing new Treasury securities, adding to the national debt.

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FRED

Federal Reserve Economic Data — a database maintained by the Federal Reserve Bank of St. Louis with hundreds of thousands of economic time series from dozens of sources.

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G

Gold Fixing Price

The benchmark price for gold set daily in London by ICE Benchmark Administration. Quoted in U.S. dollars per troy ounce. Widely used as a store-of-value indicator and inflation hedge.

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H

Housing Starts (HOUST)

The number of new residential construction projects that have begun during a given month, reported as a seasonally adjusted annual rate (SAAR) in thousands of units.

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I

Intragovernmental Holdings

The portion of the national debt owed by the government to itself — primarily through trust funds like Social Security and Medicare that hold Treasury securities.

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M

M2 Money Supply

A broad measure of the money supply that includes currency, checking deposits, savings deposits, money market securities, and small time deposits. Published weekly by the Federal Reserve.

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Mortgage Rate (30Y Fixed)

The average interest rate offered for conforming 30-year fixed-rate mortgages, published weekly by Freddie Mac as part of the Primary Mortgage Market Survey.

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N

Nonfarm Payrolls (PAYEMS)

The total number of paid U.S. workers excluding farm employees, government employees, and employees of nonprofit organizations. Published monthly as part of the BLS Employment Situation report.

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Q

QE (Quantitative Easing)

A monetary policy tool where the Federal Reserve purchases large amounts of Treasury bonds and mortgage-backed securities to inject liquidity into the financial system and lower long-term interest rates.

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QT (Quantitative Tightening)

The reverse of QE — the Federal Reserve allows bonds on its balance sheet to mature without reinvesting the proceeds, reducing the money supply and tightening financial conditions.

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R

Reserve Balances

Deposits that commercial banks hold at the Federal Reserve. A key indicator of banking system liquidity. Tracked via the WRESBAL series on FRED.

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Retail Sales (RSXFS)

Total receipts at stores that sell merchandise to the general public, excluding food services. Published monthly by the Census Bureau. Consumer spending drives roughly 70% of U.S. GDP.

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RRP (Reverse Repo)

The overnight reverse repurchase agreement facility operated by the New York Fed. Financial institutions deposit cash at the Fed in exchange for Treasury securities overnight. A key measure of excess liquidity.

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T

TGA (Treasury General Account)

The U.S. government's primary operating account at the Federal Reserve Bank of New York. When the TGA rises, liquidity is drained from the banking system; when it falls, liquidity is injected.

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U

UMCSENT (Consumer Sentiment)

The University of Michigan Consumer Sentiment Index. A survey-based measure of consumer confidence about the economy. Values above 80 generally indicate optimism; below 60 indicate pessimism.

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Unemployment Rate (UNRATE)

The percentage of the labor force that is jobless, actively seeking work, and available to take a job. Published monthly by the Bureau of Labor Statistics.

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Y

Yield Curve

A graph showing Treasury yields across different maturities. A normal curve slopes upward (longer maturities = higher yields). An inverted curve (short rates > long rates) has preceded every U.S. recession since the 1970s.

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Yield Curve Spread (10Y-2Y)

The difference between the 10-year and 2-year Treasury yields. A negative spread (inversion) is a widely watched recession indicator.

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