On Wednesday, the Federal Reserve will publish its latest economic forecasts.
Swedroe recently wrote an article where he looked at one simple metric: the Fed's effort to project its interest rate increases for 2022.
The Federal Reserve raised the Fed funds rate seven times in 2022, ending the year with the target rate at 4.25%-4.50%.
Yet the Fed has a poor track record predicting not just interest rates, but other issues such as GDP growth.
Swedroe's conclusion: "If the Federal Reserve, which sets the Fed funds rate, can be so wrong in its forecast, it isn't likely that professional forecasters will be accurate in theirs."
Persons:
Larry Swedroe, Swedroe, Federal Reserve —
Organizations:
Federal Reserve, Strategic, Federal, CPI, New York Stock Exchange