Minneapolis Fed President Kashkari
– Forward guidance can undercut the Fed’s message if it’s consistently wrong
– Says he has mixed feelings on the use of forward guidance
He’s absolutely right. All the dot plots have done is underscore that the people at the FOMC are terrible at forecasting. So now, even with a Fed statement that basically promises a Fed hike in December or sooner, you have the market giving it just a 57.5% chance.
