Hilsenrath: Skewed growth stats should change Fed focus

WSJ Fedwatcher Hilsenrath:

WSJ Fedwatcher Jon Hilsenrath looks at a note from Goldman Sachs chief economist Jan Hatzius and the debate about whether Q1 growth was understated.

More importantly, he points out that the Fed probably believes it was understated.

"Given the doubts about growth and productivity statistics in particular, in can be argued - and I suspect it will be among Fed officials in the months ahead - that the central bank needs to be most focused right now on what is its congressionally required mandate. That is not growth. It is inflation and employment," Hilsenrath writes.

With that more narrow focus the Fed may be closer to hiking than the market anticipates.