It's important to recognize that the Summary of Economic Projections, released four times a year, does not consist of forecasts about the real world. Instead, each member of the policy-making Federal Open Market Committee is asked to pretend that he or she has complete control of monetary policy.
U.S. inflation has been below target for nearly four years. This outcome is sometimes viewed as a sign of monetary policy impotence. But the Fed's projections tell us that many, if not most, officials are actually aiming to keep inflation below target for an extended period of time. In other words, low inflation in the U.S. reflects a lack of will, not tools.
Indeed, a growing number of people have reservations about the potentially misleading message of the famous "dot plot".