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The feds view is using lagging data. Truflation is using realtime data. This is why the fed gets it wrong both ways. Truflation says the housing data the fed u

• nostrademons 4y ago
  No argument there, but OP's point was that the Truflation stats might give the Fed more wiggle room, since they're significantly lower than official CPI figures. Not if the Fed neither looks at nor gives any credence to the Truflation numbers. The Fed will continue to use lagging data and continue to make decisions that harm the economy. (FWIW, the Fed does look at a variety of data sources, and the lag in housing numbers is well known to them. However, y'know who also uses lagging data when setting prices? Real estate agents. Comps usually go back a year or so, and anything sold in that time period is fair game. Y'know who else? Employees, when figuring out how much of an annual raise is fair. And so the Fed's decision-making process isn't strictly incorrect; if they don't hold rates high enough to actually see the inflation numbers go down, then the firms who set prices also aren't going to see the numbers go down when deciding how much to ask for.)