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The Fed Has Few Guidelines to Inform Its Judgments

Fed Finds Dots Are Just Dots, Failing to Convey Forecast Doubts

Bloomberg News on August 11, 2016

There are few guidelines to inform Fed officials’ “judgment about the pace at which the funds rate should rise to keep the economy at full employment and price stability,” said former Fed governor Laurence Meyer, who now runs a policy analysis firm in Washington that bears his name. “They don’t know when they are going to raise rates next, and what the appropriate pace will be.”