Claudia Sam: The Federal Reserve may misjudge the economic situation due to distorted macroeconomic data

On August 3rd, former Federal Reserve economist Claudia Sam stated that if the Fed ignores grassroots economic signals, it may misjudge the economic situation due to distorted macroeconomic data. Claudia Sam pointed out that the resilience of US consumption data stems from the increase in household debt. The Federal Reserve's "Brown Book" shows that consumers pay for daily expenses through credit cards, and the demand for grassroots food aid exceeds the levels during the financial crisis and pandemic. In terms of the job market, there is a gap between the official low unemployment rate data and the actual feelings of workers, and some workers describe the employment environment as survival. Claudia Sam warns that companies taking the initiative to raise wages due to rising living costs for employees may push up inflation risks again, and the Federal Reserve should pay attention to the real feelings of ordinary households about prices and employment.