Sleuthing for Fed Dots Hints at Yellen Plotting Three ‘17 Hikes
Bloomberg News on January 17, 2017
“Yellen likely put down three hikes” for 2017 when Fed policy makers submitted projections in December, according to Laurence Meyer, a former Federal Reserve governor who now heads a policy analysis firm in Washington that bears his name.
Meyer is playing a game of elimination popular among investors and economists that revolves around the so-called dot plot.
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Meyer said he used a process of elimination to peg Yellen at three, backed by his view of the chair as adept at building consensus on the committee, and by her increasingly rosy view of the economy in the short term. “I put a lot of weight on the fact that she has a very positive view of the economy, particularly on inflation,” he said.