Fed's Decision-Making Under Fire Due to Unreliable, Untimely Data

The Fed’s reliance on unreliable data with substantial revisions spells trouble. The annual benchmark revision for March 2023 employment estimates indicates a grim -306,000 job adjustment, double the usual size. These revisions, set to appear in February 2024, could drastically alter the economic narrative. Central banks, including the Fed, making decisions based on such shaky data raises concerns about the accuracy of economic assessments, painting a potentially bleaker picture than portrayed by GDP and GDI.