Why are central bank forecasts so wrong?

Financial Times/Chris Giles/5-18-2023

“The Bank of England is holding a ‘Festival of Mistakes’ this week, celebrating lessons learnt from financial disasters of the distant past. Some would argue that they, and their counterparts at other central banks, should focus on more recent errors.”

USAGOLD note: If their forecasts are wrong, can policy be far behind? James Grant recently called the Fed problem #1 in American finance, and Elon Musk slammed the Fed for being slow to raise rates and thinks it will now be too slow to lower them.