THe Fed discontinued its report on the Labor Market Index this month. The rationale makes sense and could equally apply to many reports and procedures.
As of August 3, 2017, updates to the labor market conditions index (LMCI) have been discontinued. We decided to stop updating the LMCI because we believe it no longer provides a good summary of changes in U.S. labor market conditions. Specifically, model estimates turned out to be more sensitive to the detrending procedure than we had expected, the measurement of some indicators in recent years has changed in ways that significantly degraded their signal content, and including average hourly earnings as an indicator did not provide a meaningful link between labor market conditions and wage growth.
Using similar rationale, the Fed ought to disband itself.
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“model estimates are more sensitive to detrending” and we do not like the trend that it shows therefore we must eliminate the model.
Nooooo. The index was too pointed, the middle trend is a much closer representation.
(links with a space don’t format properly…so a different one)
Jarhead John said:
Crack me up and add even more fun to my vacation—Ser goot…
Diogenes of Sinope said:
Who is she flipping off?
Or did somebody just ask her what she thinks of Brexit?
Joseph Constable said:
It is simple. The FRB didn’t like that the index was not supporting their desire to raise rates because you are not supposed to raise rates until the labor market overheats.
Discontinue the Fed, it is no longer functional, LOL….Of course, the Fed has never functioned in any way except to help Wall Street inflate bubbles, protect big banks, and allow the Federal government to spend like a drunken sailor.
Nah, it’s functioning very well as far as those who are in a position to change it are concerned – it is massively redistributing income to the real owners of governments and allowing pols to continue to promise more than they can deliver with tax receipts since they can just borrow their way to prosperity and loudly claim economic “recoveries”.
WHY ELSE do you think that the many times discredited theory and models used by central banks haven’t caused those central banks to be laughed out of the room as they are on so many sites like this?
Here’s another one discontinued for similar (CYA) reasons. Expand the graph to its max period of coverage and take a look:
6-Month Certificate of Deposit: Secondary Market Rate (DISCONTINUED)
Maximus Minimus said:
And in related news, the FED will start using the real inflation.
I don’t know a person with IQ above room temperature who follows Federal Reserve statistics.