A federal reserve The governor has hinted that traditional data sources and lagging economic indicators may no longer suffice.

Fed Cook Talks on “non-standard situations”: In her first speech as Fed governor Lisa Koch on Thursday provided an outlook for the economy, but her policy-making comments stole the spotlight.

“In my new role, I must make judgments about the economy, weigh new information against existing theories, and translate those judgments into appropriate policy action,” Cook said during a speech at the Peterson Institute for International Economics.

The Fed Governor highlighted her previous research on economic growth and her experience working at the Council of Economic Advisers during the eurozone crisis, which taught her how difficult it can be to forecast in a highly uncertain environment.

“I’ve also seen firsthand that relying on off-the-shelf models in non-standard situations is often a mistake,” Cook said.

The Fed began tightening earlier in the year, but as an American economist Paul Krugman pointed out on Wednesdaythe impact on the real economy is delayed by around six months.

Krugman warned that the economy may be spinning faster than most think and the Fed may have overshot the mark aggressive reaction to rising inflation.

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Fed governor suggests data sources like rents: Cook seemed to have a similar feeling Thursday when she implied that traditional data sources aren’t working.

“Paying careful attention to the data is key, which of course includes inflation and labor market readings. But we have to be humble about our ability to draw safe conclusions and prepare for the inevitable surprises,” Cook said.

“We also need to consider timely, high-frequency data that captures evolving economic trends faster than traditional data sources.”

Some examples of such data are wholesale prices for used cars, rental cars…

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