The Fed's Playing With Data That's Very Inaccurate

As the Fed struggles with how fast to raise interest rates to a "neutral rate," it is handicapped by data that are giving them the wrong signals. These signals have encouraged the Fed to be too optimistic on economic growth and over-predict inflation for years. If the Fed continues to rely on inaccurate data, the Fed is likely to accelerate the arrival of the next recession and could doom us to repeat the errors of the last 15 years.