Fed Chair Powell Urges Flexibility in Economic Forecasting After Unpredictable Pandemic Period
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Fed Chair Jerome Powell urged forecasters to be flexible and think outside models as economy remains unpredictable after pandemic.
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Powell said models do reasonably well capturing past decades but economy subject to unpredictable shocks.
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Forecasters must think outside models during times of crisis like financial crisis or pandemic, Powell said.
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Fed held interest rates steady last two meetings after aggressive hikes over past year to fight inflation.
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Labor market may be cooling as October jobs report fell short of expectations.