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Why Do We Pay Attention to Fed Forecasts?

Posted By Barry Ritholtz On September 25, 2013 @ 12:00 pm In Digital Media,Federal Reserve,Really, really bad calls | Comments Disabled

NA-BY120A_FED_G_20130918190304 [1]
Source: WSJ [2]

 

 

The short answer is because their Expectations are what drive policy, and Fed Forecasts are what drives their expectations . . .

Thus, despite their terrible forecasting track record, Fed forecast matter to policy implementation.
 


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[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/09/NA-BY120A_FED_G_20130918190304.jpg

[2] WSJ: http://online.wsj.com/article/SB10001424127887324492604579083243936441418.html

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