Fed Chair Powell on Economic Data Collection and Survey Volatility

Concerns Over Economic Data Collection

• ⚠️ Jerome Powell acknowledges concerns about cutbacks in economic statistics collection, noting that important data gatherers are reducing the size of their surveys.
• 📊 This reduction in data collection is expected to lead to increased volatility in survey results.

Reliability of Current Economic Gauges

• 🎯 Powell states that the Federal Reserve can still perform its job with the current data available.
• 💡 However, he emphasizes that the quality of economic data is a significant public good that benefits not only the Fed but also businesses, Congress, and the executive branch.

Importance of Robust Economic Measurement

• 📈 The United States has historically been a leader in measuring and understanding its large and dynamic economy.
• 📉 Powell expresses concern about seeing cutbacks in this area, highlighting that it diminishes a real benefit to the general public.
• 🧠 Accurately estimating complex economic indicators like US GDP is very difficult and requires significant investment.
• 💰 Powell advocates for continued investment in economic data collection for the benefit of the general public and informed decision-making across sectors.