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Which factors or formulas are used by the Fed to predict Economic Growth?

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    $\begingroup$ Hello! There appears to be a misunderstanding, this is a question out of general interest, not a homework problem. I'm really searching for more unique answers to this question, factors which are strongly correlated with predicting growth that aren't textbook examples I guess. $\endgroup$ – aalberti333 Sep 28 '17 at 20:04
  • $\begingroup$ Great Q, just to add some detail: "In November 2007, the Federal Open Market Committee began releasing projections for real GDP growth four times per year in its Summary of Economic Projections (SEP)." Latest 2017-09-20 forecast. It looks like the 12 members of the FOMC simply submit a forecast and the Fed then reports the median. $\endgroup$ – Kenny LJ Sep 29 '17 at 7:03
  • $\begingroup$ Two researchers note that the Fed's forecasts are consistently overoptimistic. The two researchers also note that these forecasts are very similar to the simplistic forecasting rule of simply taking the latest quarter's growth rate. $\endgroup$ – Kenny LJ Sep 29 '17 at 7:04

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