Summary: The dot plots are not FOMC commitments or an aggregate view of the FOMC. They are a collection of individual economic forecasts based on the most likely scenario and their view of appropriate policy. The SEP is useful for understanding how Fed officials view the long-term economic parameters, which appears to explain the downward shift in the long-term equilibrium rate for Fed funds. Former Fed chief...
Read More »Bernanke Suggests How to Use the Dot Plots
Summary: The dot plots are not FOMC commitments or an aggregate view of the FOMC. They are a collection of individual economic forecasts based on the most likely scenario and their view of appropriate policy. The SEP is useful for understanding how Fed officials view the long-term economic parameters, which appears to explain the downward shift in the long-term equilibrium rate for Fed funds. Former Fed chief...
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