The Fed: Powell turns to impressionist art to show limits of the dot plot

Fed chairmen don’t often draw on post-impressionist art to make a point on monetary policy.

But that’s what Jerome Powell did Friday night in trying, again, to explain the limits of what’s popularly called the dot plot.

Perhaps taking a cue from an iconic scene in “Ferris Bueller’s Day Off”, Powell showed a zoomed-in plot of dots that looked like gibberish, only to zoom out and show Georges Seurat’s “A Sunday afternoon on the island of La Grande Jatte.”

“As you can see, if you are too focused on a few dots, you may miss the larger picture,” Powell said.

The issue the Fed struggles with is that the dot plot of interest-rate forecasts is taken more or less a promise.

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