Central Banks
Fed Officials More Split Over Interest Rate Path Than They Used to Be
- Disagreement in rate projections fell during 2010s expansion
- Factors unrelated to outlook also play large role in divide
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Federal Reserve officials are not as unified as they used to be about where US interest rates will go.
An analysis of the economic projections policymakers submit quarterly on the future path for interest rates, known commonly as the dot plot, shows that disagreement fell during the 2010s and was “nearly nonexistent early in the pandemic,” according to an economic commentary published on Monday by the San Francisco Fed.