Look Ahead Dot Plot December 2021
Along with today’s wimpy tapering announcement comes more Projection Material from the Fed including a Dot Plot of expected rate hikes.
This article was originally published by Mish Talk.
Fed participants expect 3 rate hikes in 2022, 3 more in 2023, and still more in 2024.
Fade This Consensus!
I confidently make the same statement that I make after all these absurd projections.
I am curious as to which Fed clown predicted a 4.75% Fed Funds rate for 2020. Another predicted 4%.
In today’s clown act, five FOMC participants actually believe that in 2024 the Fed will hike all the way to 2.75% to 3.25%.
Such predictions are amazing in light of what they would do to interest on national debt.
I am unconvinced the Fed gets in any hikes in 2022 and certainly not 6 by the end of 2023.
Amazing Underlying Assumptions
These ridiculous predictions assume there will not be another recession in “the longer run”.
I am confident there will be another recession by 2024.
Admittedly, I am typically a early in my recession calls. But these clowns never see them and Ben Bernanke denied a major one we were already in.