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December 13, 2019

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 1.5%-1.75% for year-end 2020 median projection circled] Markets generally focus on the median “dot” or projection.

[Row of dots representing 1.5%-1.75% for year-end 2020 circled] The median projection for year-end 2020 is for the rate to remain at the current range of 1.5%-1.75%.

[Row of dots representing 1.75-2% for year-end 2020 circled] Although four dots project a rate hike in 2020 …

[Row of dots representing 1.5-1.75% for year-end 2020 circled]

…the majority of participants expect no change in 2020.

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Data contained herein from third party providers is obtained from what are considered reliable sources.

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

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