Could the Fed’s interest rate projections be a mistake?

The Fed began publishing interest rate projections submitted by FOMC participants as far back as 2012, but in the past seven years only one maverick official has ever forecast a cut in interest rates. As markets are now beginning to price in the prospect of Fed rate cuts, the experience of other central banks suggests that the Fed’s use of explicit rate forecasts could prove to be a hindrance rather than a benefit.

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