Making Data-Dependent Decisions with Undependable Data: The Fed is FEDUP!

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According to CNN, the Fed is “fed up” with economic revisions.

Questions

  1. What effect does the data mentioned in the article have on Fed policy to slash interest rates?
  2. How do labor market increases or decreases affect Fed policy on interest rates?
  3. How is the Consumer Price Index affected by data revisions?
  4. Even though the BLS, Census Bureau and other government agencies that conduct surveys that inform economic reports do rigorous work to make the best possible estimates with the information they gather, why are they imperfect?

Source,

E. Buchwald. (2024) The Fed is fed up with data revisions. CNN.com, Jan. 31 (Retrievable online at https://www.cnn.com/2024/01/31/economy/data-revisions-fed-rate-changes/index.html)