Fed’s Collins and Cook Press for Better Measures of Economic Uncertainty

Federal Reserve officials on Wednesday underscored the need for a deeper, data-driven grasp of economic uncertainty, warning that an incomplete view risks distorting policy choices and financial-market signals. Boston Fed President Susan Collins said uncertainty is especially acute in sectors that depend on long-term investment and can in some cases accelerate specific types of activity. She urged economists and policymakers to adopt a holistic approach to measuring uncertainty rather than relying on narrow indicators. Governor Lisa Cook, speaking separately, added that uncertainty carries a financial-stability dimension that must be incorporated into policy deliberations. Both officials indicated the Fed is continuing to refine its analytical tools as it assesses how businesses and households respond to shifting economic conditions.