NEW ORLEANS May 9 There are flaws in the
published forecasts of individual Federal Reserve policymakers
and the U.S. central bank should consider ditching them
altogether, a top Fed policymaker said on Friday.
Zeroing in on the so-called "dot chart" the central bank
published quarterly, which show policymakers' expected path of
interest rates, Dallas Fed President Richard Fisher said they
are largely the result of guesswork. Also problematic, he said,
they reflect the views of policymakers who are coming and going.
"If the dot chart creates confusion, one option would be to
dispense with the exercise altogether," said Fisher, a hawkish
voter on policy this year. Ever known for evocative speeches, he
channeled the children's author Dr. Seuss to say: "So, out,
damned dot! Out with the lot! It's clearly time to go."
The dot charts show when each of the Fed's 16 policymakers
expect rates to finally rise after more than five years near
zero, which according to the March publication was 2015. It also
shows how high they think rates will rise by the end of the next
Analysts have keyed in on the dots for insight on overall
Fed policy plans, though the charts have at times contradicted
the official statement from the Fed's policy-making Federal Open
(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)