Warsh said five task forces, including groups on data and inflation, could reshape how the Fed reads price pressures using real-time information and a wider set of inflation indicators.
Federal Reserve Chair Warsh said new technology and real-time data could improve how the economy is understood within 9 to 12 months as the central bank reviews how it measures and responds to inflation. He said five task forces have been formed to examine Fed functions, including one focused on data and another on inflation measurement, as part of what he called a "new course" for the institution. The effort could broaden the Fed's use of inflation signals beyond traditional headline and core gauges to include measures such as the Dallas Fed's trimmed mean, the Atlanta Fed's sticky and flexible price indexes, survey-based readings and private-sector indicators. Mainstream inflation gauges remain above the Fed's 2% target, though alternative and market-based measures present a more mixed picture of underlying price pressures.