The latest from Prosper on Forbes.com

I wrote back in April about how there has been an increased interest in predictive analytics ever since the 2008 recession. However, even with this added attention, most predictions remain largely inaccurate. No one seems to know where the economy is headed, including the Federal Reserve.  A recent article by Prevedere’s Danielle Marceau, a senior economist and data scientist, highlights how the Federal Reserve has continued to demonstrate its inability to forecast the economy. She noted that the bottom line is that “the Fed needs to learn how to forecast,” and went on to say that “analysts should be focusing on leading, predictive indicators such as small business optimism, industrial production and consumer sentiment.”

As more and more economic forecasters recognize that consumers’ actions, future intentions and emotions are a necessary component in forecasting today’s dynamic market, more will turn to adding these insights to their models. Continue reading…