3 ms·
I don't think you understand what I am saying. 1. I'm not arguing that the fed is artificially inflating inflation. I'm saying that if they want to suppress th
by totalZero 6y ago
I don't think you understand what I am saying.
1. I'm not arguing that the fed is artificially inflating inflation. I'm saying that if they want to suppress the appearance of inflation in the short term so that they can keep rates low and prevent any panic about the dollar until they can react to it, they have some ability to do so because of the opaqueness of the data.
2. Bias in a signal doesn't have to be persistent to be problematic. The average reading does not have to be biased in the long term for there to be a problem with the spot reading. That's a major reason why more granular data is always better.
3. I'm not stating any conspiracy theory. The Fed is driven by data. Biases in data affect data-driven decisions. CPI includes various inputs, not all of which are experiencing the same demand. CPI is an agglomerate reference.