Attention Economy


Monday, July 31, 2023

Economic Forecasting - More Art than Science


A US Soft Landing? Even the Fed Doesn’t Believe It
https://www.bloomberg.com/opinion/articles/2023-08-01/a-us-soft-landing-even-the-fed-doesn-t-believe-it
Unless 3.6% unemployment is the new normal, the central bank has more tightening to do. 
 
Economist Behind Popular Recession Gauge Worries She Created a ‘Monster’
https://www.bloomberg.com/news/articles/2023-08-01/us-recession-indicator-sahm-rule-might-not-hold-for-2023
Claudia Sahm thinks her eponymous rule may fail this time, meaning the US may dodge a downturn even if unemployment goes up modestly.


MY TAKE: Traditional recession indicators have misfired — are we in for a sneaky recession?