Data source explanation
What is FRED?
FRED, short for Federal Reserve Economic Data, is a large public database of economic time series maintained by the Federal Reserve Bank of St. Louis.
It is useful for the Wealth Reform Project because many questions about wealth, wages, housing, inflation, debt, and interest rates require long-term data. FRED makes it possible to compare these trends over time.
Why it matters
Wealth reform cannot be studied only by looking at wealth totals. The broader economy matters too. Inflation changes purchasing power. Interest rates affect mortgages and debt. Wages affect household income. Housing prices affect whether workers can build assets.
FRED can help connect wealth concentration to the economic conditions ordinary households experience every day.
Useful categories
| Category | Examples | Why It Matters |
|---|---|---|
| Inflation | CPI, PCE price index | Shows how purchasing power changes over time. |
| Wages | Median wages, average hourly earnings | Shows whether workers are gaining ground or falling behind. |
| Housing | Home prices, rents, mortgage rates | Shows whether housing is becoming easier or harder to afford. |
| Employment | Unemployment rate, labor force participation | Shows labor market strength and household earning conditions. |
| Interest rates | Federal funds rate, mortgage rates, Treasury yields | Shows the cost of borrowing and the return environment for capital. |
| Debt | Household debt, consumer credit | Shows how households rely on borrowing and how debt pressure changes. |
How this source will be used
The first use of FRED should be simple comparison charts. For example, the project could compare median wages, housing prices, inflation, and mortgage rates over the same time period.
This would help show whether household economic pressure is coming from weak wages, rising prices, housing costs, interest rates, debt, or some combination of these factors.
Possible first charts
- Median wages compared with inflation.
- Home prices compared with median household income.
- Mortgage rates compared with home affordability.
- Consumer debt compared with income.
- Unemployment rate compared with wage growth.
Connection to proposals
FRED data will be especially useful for evaluating proposals like the Housing Cost Pressure Index. It can also help provide background for reforms involving wages, interest rates, savings, debt, and household financial security.
Current project status
This source has been identified as a high-priority data source. The next step is to select a small number of useful FRED series and document which ones should be used in the first charts.