Via ConvergEx’s Nick Colas,
In the Q&A period during yesterday’s Federal Reserve Chair press conference, Janet Yellen was careful to describe the projections made by Fed officials on future interest rate policy as point estimates. The implicit caveat here is that every “Dot” on the Fed’s chart of expected future Fed Funds rates carries its own confidence interval – a statistical range with the dot at the center. Today we take Chair Yellen’s observation to heart, and ponder what range (rather than simple average) of potential future rates is most likely.