Financiers are hoping Christmas will come early next week when the Federal Free market Committee launches its newest forecasts about financial policy. It’s tough to picture they’ll get their dream that Chairman Jerome Powell will mean huge interest-rate cuts to come in 2024. On the other hand, the rest people will not get our dream to understand what the Fed means to do with among its most effective tools.
At problem is the quarterly Summary of Economic Projections, the most recent edition of which will be launched Wednesday together with the FOMC’s December policy declaration. The focal point is the “dot plot” by which FOMC individuals indicate their guesses about the most likely future course of rates of interest– a graphic that offers fodder for market speculation (in all senses of the word) for days if not weeks.
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