Pink Plan: How is the Federal Reserve looking forward to interest rates?

It is almost certain that this distributed chart is most related in the financial markets. The Federal Reserve sends its analysts to update the ‘Points scheme’ every three months since January 2012, which has become a decision, is a source of advantage of interest rates for the US Central Bank, whether or not. It is also an important source, although mysterious, for clues for any opposition to policy makers in the Federal Reserve. What is the point scheme offered? The Points Scheme is a graphic drawing that shows the coming years of the movement of the financing interest rate of the US Federal, which is the short -term interest rate controlled by the Federal Reserve. Each of the Federal Open Market Committee, which determines prices, is appointed as a point for what they consider to be a point amid the appropriate price for the price at the end of the next three years and in the longest term. Investors focus on the center. Until 19 interest rate policies – the seven governors in the Federal Reserve in Washington and the heads of 12 local branches – can participate in the designation of points. What is the benefit of dropping the interest rate on federal funds? The deviation plan was invented at the end of 2011, when federal reserve officials considered preparing the markets for a shift they hoped to reach to move away from the unprecedented level of support they granted to the US economy after the financial crisis. When will we know that the interest rates are already approaching their highlight? The chairman of the Federal Reserve at the time Ben Ben Bernanke, with him, Janet Yellen, who was his deputy before taking over the president of the Council for four years, regarded the point plan as a way to give a view of the markets about the thinking of the Federal Reserve above any immediate decision -making process. The advertisements of the Federal Open Market Committee focus mainly on the current economic conditions and the immediate goal of the interest rate, although over time developments and can be used to sometimes provide strong indicators at future prices. What is its importance? As the point scheme moves, it could send a strong message to investors about whether the US central bank expects to raise or lower interest rates. It also creates a standard that can be used to highlight the differences between the opinions of federal reserve officials and those in the financial markets. Is it possible to know who is the owner of the point? The point scheme has no names, so there is no way to know any appreciation of the chairman of the Federal Reserve, although analysts depend on their suspicions. The unknown nature of the point scheme is one of the reasons for the presence of critics in addition to fans. What do critics say about the point scheme? Perhaps the biggest complaint is that expectations are not official collective expectations. Federal Reserve staff tried to investigate the possibility of creating a consensual point, but officials decided that it would be very difficult to obtain an agreement between various officials with different opinions. The most important companies of the ‘federal’: reduce interest or discharge, and each member can build his expectations on a different economic model or set of assumptions, and there is no consistency in how to choose points and there is no reasoning for thinking. What makes matters more complicated is that only five of them have a vote in the Federal Open Market Committee each year among the 12 local presidents of the federal reserve. This raises questions about the extent of accuracy, the opposite of the points of the intentions of the Federal Open Market Committee in the long run. How do the Federal Reserve leaders look at the point scheme? Their views on it are mixed. In 2014, during his first press conferences at the Federal Open Market Committee as chairman, Yellen said “people should not look at the points plan” as “the most important way the committee wants to talk or really talk about politics for the general public.” But in 2016, after Federal Reserve officials reduced their expectations for the number of interest rate hikes that year to two of four, Yellen told reporters that the transformation in points “reflects a slightly slower road for global growth and sharpening credit conditions. Jerome Powell, who succeeded Yellen in February 2018, often reduced the importance of the tip graph, as lawmakers told March 2024 that the latest expectations were “not a plan”. Was the increase in US interest rates not affected? But it also proved that it sometimes helps, as in June 2023, when the Federal Reserve policymakers prevented to raise interest rates, but the tip chart showed more increases later in the year- which contributed to avoiding an impetus from investors at the end of the interest rates.