Macro Regime Detector

Identify the current US macroeconomic regime by synthesizing real-time treasury yields, GDP growth, inflation, interest rates, and commodity price signals from the Finskills API. Output a regime classification with an evidence-based rationale and asset allocation implications.

Setup

API Key required — Register at https://finskills.net to get your free key.
Header: X-API-Key: \x3Cyour_api_key>

Get your API key: Register at https://finskills.net — free tier available, Pro plan unlocks real-time quotes, history, and financials.

When to Activate This Skill

Activate when the user:

• Asks "what macro regime are we in?"
• Asks how the current macro environment affects their portfolio or sector
• Wants to understand Fed policy implications, yield curve shape, or inflation trend
• Asks for an asset allocation view based on macro conditions
• Mentions recession risk, stagflation, reflation, or rate cycle questions

Macro Regime Framework

This skill classifies the US economy into one of six regimes:

Data Retrieval — Finskills API Calls

Make the following calls (all free-tier endpoints):

1. US Treasury Rates (Yield Curve)

GET https://finskills.net/v1/free/macro/treasury-rates

Extract: 3m, 6m, 1y, 2y, 5y, 10y, 30y yields
Compute: 2y10y spread (primary inversion signal), 3m10y spread (recession predictor)

2. GDP Growth

GET https://finskills.net/v1/free/macro/gdp/US

Extract: latest GDP growth rate (QoQ annualized), trend direction (3-quarter comparison)

3. Inflation

GET https://finskills.net/v1/macro/inflation

Extract: CPI YoY, core CPI YoY, PCE YoY, trend (accelerating/stable/decelerating)

4. Interest Rates (Fed Policy)

GET https://finskills.net/v1/macro/interest-rates

Extract: Federal Funds Rate (current), last 6 rate decisions, trend (hiking/cutting/pausing)

5. Key Economic Indicators (FRED via free endpoint)

GET https://finskills.net/v1/free/macro/indicator/UNRATE

Extract: US unemployment rate (latest, 3-month trend)

GET https://finskills.net/v1/free/macro/indicator/INDPRO

Extract: Industrial Production Index (latest YoY%)

6. Commodity Price Signals

GET https://finskills.net/v1/free/commodity/prices

Extract: Gold (safe haven demand), WTI Crude (inflation/demand signal), Copper (growth proxy)

Analysis Workflow

Step 1 — Yield Curve Classification

Using treasury rates data:

Note the steepening/flattening trend direction (compare to 3 months ago if data allows).

Step 2 — Growth Assessment

Cross-check with: Industrial Production YoY, Unemployment trend.

Step 3 — Inflation Regime

Classify trend: Rising / Stable / Falling (compare last 3 readings).

Step 4 — Fed Policy Stance

Step 5 — Commodity Cross-Check

• Gold rising + stocks flat or falling: Flight to safety, risk-off signal
• Oil rising + copper rising: Demand-driven inflation, growth-positive
• Oil rising + copper falling: Supply shock, stagflation signal
• Gold + bonds both rising: Deflation/recession fear

Step 6 — Regime Classification

Score each indicator and use this decision matrix:

IF GDP_expanding AND inflation_2-4% AND rates_stable: → GOLDILOCKS
IF GDP_expanding AND inflation_rising AND rates_rising: → REFLATION/OVERHEATING
IF GDP_slowing AND inflation_high AND rates_elevated: → STAGFLATION
IF GDP_slowing AND inflation_falling AND rates_cutting: → SLOWDOWN
IF GDP_contracting AND yield_curve_inverted: → RECESSION

Assign confidence: HIGH (3+ signals aligned), MEDIUM (2 signals), LOW (mixed signals).

Step 7 — Asset Allocation Implications

For each regime, output the relative preference for major asset classes:

OW = Overweight | N = Neutral | UW = Underweight

Output Format

╔══════════════════════════════════════════════════╗
║       US MACRO REGIME REPORT  —  {DATE}         ║
╚══════════════════════════════════════════════════╝

🏛️ REGIME CLASSIFICATION: {REGIME NAME}
   Confidence: {HIGH / MEDIUM / LOW}
   Trend: {Deepening / Stable / Transitioning}

📊 MACRO DASHBOARD
  Treasury Yields:
    3M: {%}  |  2Y: {%}  |  5Y: {%}  |  10Y: {%}  |  30Y: {%}
    2Y–10Y Spread: {bps} ({normal/flat/inverted})
    3M–10Y Spread: {bps}

  Growth:
    GDP Growth:         {%} annualized ({direction})
    Industrial Prod:    {%} YoY
    Unemployment:       {%} ({trend})

  Inflation:
    CPI YoY:            {%}
    Core CPI YoY:       {%}
    PCE YoY:            {%}
    Trend:              {Rising / Stable / Falling}

  Fed Policy:
    Fed Funds Rate:     {%}
    Policy Stance:      {Tightening / Pause / Pivoting / Easing}
    Last Decision:      {hike/cut/hold} ({date})

  Commodity Signals:
    WTI Crude:  ${price} ({weekly change}%)
    Gold:       ${price} ({weekly change}%)
    Copper:     ${price} ({weekly change}%)
    Interpretation: {one-line signal}

🎯 ASSET ALLOCATION IMPLICATIONS
   Overweight:  {asset classes}
   Neutral:     {asset classes}
   Underweight: {asset classes}

📝 REGIME NARRATIVE
   {3–4 sentences describing the current macro environment, key risks,
    and what conditions would trigger a regime shift}

⚠️ WATCH — REGIME SHIFT TRIGGERS
   Bull shift if: {conditions}
   Bear shift if: {conditions}

Limitations

• GDP data has a 30–60 day reporting lag (advance estimate vs. final).
• This is a macro framework for portfolio positioning, not a market timing tool.
• Commodity prices can be noisy on short timeframes; use weekly/monthly trends.