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Is It Time for the Fed to Ditch the Dot Plot?

Is It Time for the Fed to Ditch the Dot Plot?

by Eric Winograd
The magnitude of recent market reactions to the Fed’s comments makes it clear that communication between the Fed and markets isn’t working: the market is too focused on the Fed—and not enough on the economy. One solution? The Fed should stop giving forward guidance about rates—and eliminate the “dot plot.”

Economics


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