“The Federal Reserve has released its latest monetary policy decision. Mostly it was a non event, as the Fed is not indicating a quicker pace of rate hikes, despite improving unemployment and inflation data.
The Fed kept interest rates between 0% and 0.25%, and took another $10 billion off its monthly asset purchases.
The Fed also released its latest Summary of Economic Projections, which includes an updated version of its “Dot Plot,” and it looks like the FOMC has no idea where interest rates are going.
The Dot Plot shows what various members of the FOMC are predicting for the path of future rate hikes. It’s a forecast.
The latest version of its Dot Plot shows an even wider dispersion among where FOMC members believe interest rates will be, both at the end of the next three years and over the longer run. In other words, there’s no consensus about what’s going to happen with interest rates. It’s anyone’s guess.
Here’s the latest Dot Plot, followed by the previous Dot Plot from March…..”
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