The secret to remember is that Fed Watching is not about your interpretation of the economy or what you would do if you were a Board member. That approach will lead you down a bad road. The secret is to interpret the data as the Fed sees it, and remain agnostic about whether the policy is wrong or right.Click here for the whole piece, titled "The Art and Practice of Fed Watching". And a tip-o-the-hat to Calculated Risk for the link.
Sunday, May 15, 2005
Fed Watching (from Calculated Risk)
Tim Duy is a faculty member in the Economics Department of the University of Oregon. Prior to that, he was a Fed-watcher for the private consulting group G-7. He will be writing a regular piece for Economist's View on the Fed. Here's a bit from his first piece: