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IMF to Fed: Drop the dots
Now that International Monetary Fund head Christine Lagarde has told the Fed to wait to raise interest rates, the IMF staff has followed up with suggestions that the U.S. central bank remake its communications policy and, in a phrase, ditch the dots. The dot plot of interest rate projections issued by Fed officials every three months is confusing, an IMF staff paper has concluded, and should be replaced with a staff forecast of the interest rates needed to achieve the Fed's goals of full employment and stable inflation. "It is not straightforward to connect the dots to get a coherent vision of the path ... (full story)
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