Fed Dot Plot
Definition
A chart of individual Federal Reserve participants’ projections for the appropriate federal funds rate at specified future dates.
Each dot represents one participant’s view for a particular year or for the longer run. Readers often look at the median dot to see where the middle projection sits. Participants can revise their projections as the economic outlook changes.
Example
One dot at 3.5% for next year means one Fed participant thinks 3.5% would be appropriate at the end of that year.
United States
How do you read the Fed dot plot?
Each dot shows one participant’s view of an appropriate policy rate at a specified year-end or over the longer run. A lower median suggests participants’ views shifted lower at that horizon. The dots are projections conditional on their outlooks.
Federal Reserve economic projections