A federal watchdog group on Monday called for a data explosion from the Fed to help the economy avoid an economic crisis.
In a report titled “The Data Explosion”, the Institute for Supply Management (ISM) also said the Fed should prepare for a “data tsunami” by taking more action on data privacy and transparency, a measure the Fed already said is important in the wake of revelations that the Trump administration had targeted bank customers.
“The data explosion is coming,” the report said.
“It could mean that more people and businesses lose their jobs, businesses will slow down and take a bigger hit, and that consumers lose their ability to make purchases on online and mobile platforms.”
In the face of these potential adverse consequences, we urge the Federal Open Market Committee (FOMC) to take immediate steps to prepare for the data explosion.
“The report came a day after Fed Chair Janet Yellen made a surprise appearance on a conference call with policymakers to warn that the economic crisis could become “the new normal”.
Yellen warned that a potential economic collapse could be caused by a data flood from the Trump White House.”
This could mean a severe economic slowdown and potentially a prolonged economic downturn,” she said on the call, according to a transcript obtained by Reuters.
Yellen also said a number of other factors were being considered in response to the election of President Donald Trump.
The Federal Reserve’s annual meeting is being held in Washington, DC on Wednesday.
The committee, which is the central bank’s top economic decision-making body, meets to review monetary policy and other policies.