After seeing the headlines: US Economic Growth Fastest In 4 Years and Soft home sales, prices cast economic gloom on the same page, I found myself confused by the apparent contradiction. Upon further review, I was able to conclude that one report came from the Commerce Department, and one came from the Federal Reserve Vice Chairman Donald Kohn. I don't have any idea who is more reliable.
I had always thought that looking at economic indicators like inflation, interest rates, unemployment rates, energy prices, value of the dollar against foreign currency, stock prices, etc were the way to gauge the economy, but if "experts" are looking at the same data and coming up with completely different interpretations, then what does that all mean? Are there other economic indicators the people look at that I don't know about that are more subjective? All I can conclude is that I just don't know what makes the economy tick like I thought I did. I guess that shouldn't really come as any big surprise.
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