Crystal ball or bowling ball?

The Fed's statements about what they *plan* on doing is referred to as “forward guidance.” But, their forward guidance is only as good as their forecasts.

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Crystal ball or bowling ball?
Welcome to the Know the Difference Minute for Wednesday, June 21st.
Federal Reserve Chair Powell testified before the House Financial Services Committee today.
It was four hours long, but basically, the economy has weakened and inflation is falling, though not nearly fast enough. The Fed decided to not hike rates at their last meeting because they want to see how things shake out over the next month between now and their next meeting
The best line was when he was asked about what the Fed plans on doing. He said two more hikes is a “pretty good guess.”
True. It’s a guess. Their statements about what they *plan* on doing is referred to as “forward guidance.” But, their forward guidance is only as good as their forecasts. Their forecasts, while educated guesses, sometimes seem like they come more from staring into a bowling ball instead of a crystal ball.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.