Dot Plot Fantasyland Projections

The Economic projections made at today's FOMC meeting are straight from Fantasyland

4.75%-5.00% Interest Rates in 2020?

That's what one economic clown believes.

Did anyone bother to calculate interest on the national debt at even 4.00%?

Judging from the dot plot, it appears the Fed is thinking about a recession or a perfect landing sometime in the "longer run".

All this stuff is pure silliness.

Mike "Mish" Shedlock

Comments
No. 1-16
JeffD
JeffD

Great observation on the dot plot. WTF, indeed!

theplanningmotive
theplanningmotive

Mish you make an important point. Any brief glance at the monthly reports of the Congressional Budget Office already shows the hike in interest payments from the combined effect of a bigger deficit and higher average interest rates.

KidHorn
KidHorn

Maybe the interest rate will decouple from the FED rate. Who would have thought anyone would buy negative yielding debt? There's close to $10t of it floating around.

QTPie
QTPie

You should know that “aid” to Israel is really just corporate welfare to US defense contractors since that’s where most (soon all) that money has to be spent at.

AWC
AWC

Ah, but if debt doesn't matter," surely, interest rates shouldn't matter either? /s