Read the economy with the thermometers

MODULE 01 / 04

How to read a thermometer

The scale, the three ways a tab combines its indicators, the 'what would turn it red' box and the history chart. Learn it once and all thirteen tabs read the same way.

LESSON 1 / 4 · 6 MIN

A grade from 1 to 10

Know what a 4, a 7 and a 9 mean before looking at any number.

Every tab on /fred answers one question — is the economy growing, is there work, are prices rising — with a grade from 1 to 10. Ten is the healthiest and 1 the worst. The direction never flips: a high grade is always good news, whether the tab measures inflation, debt or unemployment.

GradeZoneHow to read it
8–10Green · HealthyNothing in this area needs watching today.
5–7Amber · CautionSomething is off. Find out which indicator drags.
1–4Red · AlertThe area is in a state that, historically, came with trouble.

The big number at the top of /fred is the average of the thirteen areas. It is useful as a headline and useless on its own: an average of 6 can be thirteen sixes or ten nines with three areas in red. Always open the list of areas below it.

Key idea
A grade describes the latest published data. It does not forecast prices, it is not a buy or sell signal, and a red tab does not mean a recession is coming. It means: in this area, things look like they did in past bad moments.
Tip
The bar of ten segments under each grade lights up to the grade, and the glow marks where today sits. When a tab says 'average 7.75 · close to dropping to 7', the grade is on the edge: one weak release can move it.
On the site · /fred
Open /fred and count how many areas are green, amber and red today. Write the three numbers down: they are your starting point for this course.
Open it on the site →
Check yourself

The Prices tab shows 3/10. What does that tell you?