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Critics say Warsh’s inflation tracking approach adds little predictive value

Nomura economists argue the alternative measure does not improve forecasting versus standard core inflation readings.

Reported · Written up by our desk · Inflation

MarketWatch highlights criticism of Kevin Warsh’s new approach to tracking inflation, focusing on whether it offers better forecasting power than conventional measures.

The outlet, citing economists at Nomura, says the alternative framework does not show improved predictive value compared with core readings.

In their view, the new method’s purported advantage over established inflation metrics is not supported by evidence on forecasting performance.

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