Prediction record

Misseconomy

The Federal Reserve will stop tightening monetary policy (once something in financial markets breaks) before short-term interest rates reach 3%.

A scored record for Lyn Alden, made on .

BlogPrimary sourceeconomy

Scored record

Misseconomy

I think the Fed will probably get some signals to stop tightening monetary policy prior to hitting very high levels, once something in financial markets breaks. And I think that will happen before they reach 3% short-term interest rates, and/or before $1 trillion is off the balance sheet.

The Federal Reserve will stop tightening monetary policy (once something in financial markets breaks) before short-term interest rates reach 3%.

Made on
2022-05-08
Outcome
Miss
Importance
4 / 5
Contribution
-1.12

Criterion

Resolution status
resolved
Resolved on
2022-09-22

The upper bound of the fed funds target rate stops rising (Fed pauses hikes) at a level strictly below 3% (i.e. the final hike of the cycle leaves the rate under 3%). Resolves FALSE if the Fed continued raising to 3% or above before pausing.

Criterion: resolves FALSE if the Fed continued raising to 3% or above before pausing. The Fed reached 3.00-3.25% on 2022-09-22 and kept hiking to a 5.25-5.50% peak (July 2023) before pausing — far above the 3% threshold. Evidence therefore supports a FALSE outcome (the prediction that tightening would stop before 3% did not hold). resolved_on set to the date the rate first crossed 3% (2022-09-22), within the record's 2023-05-01 deadline. No conflicting credible evidence; official Fed source.

Sources

  • May 2022 Newsletter: Inflation or Recession

    lynalden.com ·

    Source

Outcome evidence

  • Federal Reserve official open-market-operations record: the FOMC raised the fed funds target range to 3.00-3.25% on 2022-09-22, and continued hiking beyond that to 3.75-4.00% (Nov 2022), 4.25-4.50% (Dec 2022), and ultimately 5.25-5.50% (Jul 2023). The Fed did NOT pause below 3% — it raised through and well past 3% before pausing.

    Evidence

Corrections

  • Date: Actual publication date (already in sources[].date) is 2022-05-08.

Score contribution

-1.12
Confidence
80%
Outcome
Miss
Importance
4 / 5
Contribution
-1.12

This page displays the scored record as published; the website doesn't recompute or adjust the score.

Provenance

The Federal Reserve will stop tightening monetary policy (o…
Methodology version
v1.0.0
Last computed
July 6, 2026
Made on
2022-05-08

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Evidence firstMethodology