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Understanding the Federal Reserve’s Dot Plot

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Understanding the Federal Reserve's Quarterly "Dot Plot"

The “dot plot” shows projections for the federal funds rate … a key short-term interest rate that can affect savings yields and consumer loan rates.

Each dot represents the view of a Fed policy maker for the rate’s target range at the end of each year shown.

[Row of dots representing 1.75%-2.0% for year-end 2019 median projection circled] Markets generally focus on the median “dot” or projection.

[Row of dots representing 1.75%-2.0% for year-end 2019 circled] The median projection for year-end 2019 is for the rate to remain at the current range of 1.75%-2.0%.

[Row of dots representing 1.5% for year-end 2019 circled] Seven “dots” do project one more rate cut this year despite the median projection of no additional cuts.

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However, its accuracy, completeness or reliability cannot be guaranteed.

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