Economics
How Fed Can Make a Better Dot Plot After December's Misfire
- Clarida-led panel may be reviewing ways to convey uncertainty
- There may be no easy answer, as officials search for a fix
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How do you talk about your best guess for where the economy is headed while also highlighting your worst fears?
That question is proving a major challenge for Federal Reserve Chairman Jerome Powell and his colleagues in the wake of December’s communications misfire. When the Fed’s so-called dot plot of the projected interest-rate path signaled two hikes for 2019, U.S. stocks plunged 3.5 percent in just over an hour.