What's going on?

Deere � the world�s biggest agricultural equipment-maker � posted better-than-expected quarterly results on Wednesday.

What does this mean?

It�s a good time to be a farmer: the US reckons they�ll earn 20% more money this year than last, and the most they�ve made in eight years. And Deere�s been happy to help: sales of its big and small equipment climbed by 23% and 17% respectively last quarter compared to the same time last year, helping push overall profit up by a better-than-expected 69%. And since the company reckons the boom in demand will continue, it gave a better-than-expected profit outlook for 2022 too. That�ll do, pig: investors initially sent Deere�s shares up 4% after the news.

Why should I care?

The bigger picture: America�s looking up.
Deere�s strong results are a good sign for America as a whole: the company�s an economic bellwether, meaning high demand for its products suggests the wider economy is firing on all cylinders. Data out on Wednesday backs that up: it showed that claims for US unemployment benefits fell to their lowest in 50 years last week.

Zooming out: Will the Fed step up?
The US isn�t out of the woods yet, mind you: supply chain shortages are still plaguing the country�s businesses, with inflation at its highest level in 30 years. Combine that with Wednesday�s jobs data, and the Federal Reserve might need to start thinking about raising interest rates sooner than planned next year. But it�ll have to be careful: higher rates could end up slowing down price rises, sure, but they could also deter spending and knock the recovery off course altogether.