Fed’s Waller Jokes Dot-Plot Forecasts Are Made With ‘Pencils That Have Big Erasers’
Federal Reserve Governor Christopher Waller remarked that policymakers submit their interest-rate forecasts (the dot plot) with “pencils that have big erasers,” suggesting officials do not treat the projections as binding and are open to revising the way they communicate the policy outlook.
Federal Reserve Governor Christopher Waller commented on the central bank’s quarterly “dot plot” of interest-rate projections, using a lighthearted analogy to stress that the forecasts are far from set in stone.
According to Waller, policymakers fill in their projections “with pencils that have big erasers,” indicating that the Fed does not consider the dots as binding commitments and remains flexible about how it presents its future policy path.
The remark underscores the Fed’s openness to potential changes in its communication strategy, even as market participants closely watch the dot plot for clues about the timing and magnitude of rate moves.
Source: First Squawk