Claudia Sahm: Economic projections exercise remains flawed but central for dual mandate policy

Claudia Sahm: Economic projections exercise remains flawed but central for dual mandate policy
Economic projections flawed but central for policy

Claudia Sahm raises concerns about the Summary of Economic Projections, acknowledging its flaws but emphasizing its relevance in determining the appropriate policy to achieve the dual mandate in the coming years.

Sahm also points out that Warsh chose not to participate in the exercise and did not share his perspective during the press conference.

Sahm has previously called attention to all-time low consumer sentiment and increasing inflation expectations, raising concerns about survey data reliability in a recent analysis. She has also argued that upcoming CPI headlines may appear negative, but current inflation remains concentrated in narrow categories, according to her commentary. Her latest remarks build on these ongoing discussions of inflation and economic projections.

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