"Hard data" refers to concrete improvements in the economy, such as a firm hiring more people or an increase in average wages. Meanwhile, "soft data" refers more to Americans' sentiments and beliefs about the direction of the economy.
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The Fed just touched on one of the biggest debates about the post-election economy
The Fed minutes touched on the hard data versus soft data issue.
United States Federal Reserve Chair Janet Yellen holds a news conference following the two-day Federal Open Market Committee meeting in Washington, U.S., September 21, 2016. REUTERS/Gary Cameron
Since US President Donald Trump's election, a bunch of sentiment indicators have shot up: for example, small business owners are feeling optimistic and consumers now think the government is great for business.
But at the same time, we have not seen the hard data match the improving sentiment yet. Moreover, Trump's pro-business tax cuts and deregulation agenda have not yet gone into effect, meaning that some of the benefits that firms are anticipating might not actually happen.
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