The “Dots” Chart – Then And Now

Perhaps the one most important, if completely meaningless chart (because it will as usual revised countless times in the next year and the final outcome will be anything but what the Fed is predicting) that everyone was looking for in today’s FOMC forecast materials, is the so-called “dots” – the Fed’s estimates of where the Fed Fund’s rate will be at the end of 2016.
The big picture: while there is increasing clustering in the 2-2.5% region, the lower and higher forecasts actually went down, while the upper range of the Fed Funds rate forecast chart for 2016 was reduced from 6% to 5%.
In other words, when forecasting inflation, growth and the Fed Funds rate, the Fed will need a smaller chart.

This post was published at Zero Hedge on 09/17/2014.