‘We need to snap out of it’: The Fed is being misled — again — by inflation numbers, says professor behind popular recession predictor

The U.S. Federal Reserve is being misled by inflation data and is potentially making a big mistake, a professor who developed a widely used recession indicator told MarketWatch.

Campbell Harvey, a finance professor at Duke University who developed the yield-curve recession indicator, said that the consumer-price index doesn’t accurately reflect price changes and that the Fed should not rely on it to make policy decisions. Doing so could derail the U.S. economy, he said.

“It…