According to a market researcher, the Federal Reserve is not using any special method to tweak their policies. Rather, it is seeking the assistance of the social media networks, which are conducting economic surveys, to design the policies.
As per Jamer Bianco, the President of Bianco Research, the A+ economy, signaled by the leading indicators, is mistaken to withstand the elevating rates of interest. On the contrary, the scenario indicates a B- economy and is not dependant on the data collected from a survey. He further stated that the social media has successfully created an effect of bandwagon amidst the respondents of the surveys. Since the people belonging to a particular herd tend to follow the similar rule, the survey is getting a different result.
He also added that the onset of the social media platform has influenced the people residing in the world as it is overwhelmed with the economic news. He added this statement in regards to the favor imposed due to the news about the largest economy in the world.
He also expressed his concern about the way people are responding to the questions asked regarding a particular economy. Bianco fears the entire scenario and claims that if Fed continues to use the ongoing process to design the policies, it may land in taking the decisions under the wrong foot.
He also suggested that the officials of the Fed should come out of the nutshell and seek data from the other sources. He also mentioned favoring Google Trends that is known to offer more accurate feedback from the people and also accurately predicts the future of the economy.
Google is the best platform, where people bare their souls and views about the diversified fields. Hence, this platform can prove to be extremely beneficial for gathering information on any field. His suggestion may prove to be beneficial for the Feds if the action is initiated with immediate effect.