Fed's Waller Addresses SEP Signaling Value in Istanbul

Federal Reserve Governor Christopher Waller delivered remarks on the signaling value of the Summary of Economic Projections, the Fed's quarterly forecasting tool, at the Istanbul Economic Forum hosted by the Central Bank of the Republic of Türkiye.

The Summary of Economic Projections, commonly known as the SEP or "dot plot," compiles individual Federal Open Market Committee participants' forecasts for key economic variables including interest rates, inflation, unemployment, and GDP growth. Waller's appearance at the Istanbul forum underscored the growing international interest in how major central banks communicate their policy intentions to markets and the public.

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Central bank communication has become an increasingly scrutinized discipline in the post-pandemic era, as policymakers worldwide have navigated sharp inflation cycles and aggressive rate adjustment campaigns. The SEP in particular has drawn attention from economists and market participants who treat it as a forward guidance mechanism, even as Fed officials have repeatedly cautioned that the projections are not commitments.

Waller's engagement with Türkiye's central bank reflects broader cooperation among global monetary institutions at a time when cross-border capital flows and currency dynamics make coordinated transparency an area of shared interest. The Istanbul Economic Forum provided a venue for central bankers to examine how communication tools influence market expectations and financial stability.

Continue reading at FRB: Speeches.