Kevin Warsh isn't a "data point-dependent guy"

The data that the Federal Reserve uses to measure the state of the U.S. economy is at risk of disappearing. Last month, the Fed’s system for monitoring banks suffered a temporary outage.

To help solve those problems, Fed Chair Kevin Warsh has set up a task force to examine the state of economic data. But that could mean putting how the U.S. measures the economy in the hands of private companies.

According to economist Kathryn Anne Edwards, while private data can often be more accurate, it doesn’t give a comprehensive look at the broader economy. And without that bigger picture, the smaller parts of the economy can get lost.

“Essentially, we lose minorities first,” Edwards said. “[The unemployment rate] comes with 120 [other data points]. What is the unemployment rate of young people? What is the unemployment rate of women? What is the unemployment rate of black people?”

And that representation in the data matters when measuring how Americans are really experiencing the economy.

“Marketplace” host Kai Ryssdal spoke with Edwards about her reaction to Wednesday’s quarter-point rate hike and the future of economic data in this country.

To hear their full conversation, click the audio player above.