US Federal Reserve Rate and Solar Activity (1955-2022): Proof of Strong Correlations Cover Image

US Federal Reserve Rate and Solar Activity (1955-2022): Proof of Strong Correlations
US Federal Reserve Rate and Solar Activity (1955-2022): Proof of Strong Correlations

Author(s): Vladimir Belkin
Subject(s): Economy, Financial Markets
Published by: Институт за икономически изследвания при Българска академия на науките
Keywords: effective federal funds rate; solar activity cycles; Wolf numbers; US Federal Reserve rate

Summary/Abstract: The report uses a methodological approach founded by Jevons and Chizhevskij. The years of solar cycles have been numbered according to the order established in the astrophysics of the un, then grouped and compared with the arithmetic averages of effective rates for US federal funds. Grouping statistical data by serial numbers of years of solar activity cycles has made it possible to construct a function of effective rates on federal funds (dependent variable) and serial numbers of years of the average solar activity cycle (independent variable) with correlation coefficients on its four segments close to 1 (0.99499269, -0.998464195, 0.986985363, -0.996221106). This function enables predicting the values of the effective interest rate on US federal funds in subsequent years. It follows that in 2023 this rate will increase to 1.996%.

  • Issue Year: 2023
  • Issue No: 2
  • Page Range: 220-229
  • Page Count: 10
  • Language: English