Do You Dot Plot? Understanding How the Fed Forecasts

It’s probably the most closely scrutinized scatter chart in world financial markets. Every three months since January 2012, the Federal Reserve has sent analysts scurrying by updating its “dot plot,” which has become the de facto monetary policy forecast of the U.S. central bank — whether the Fed wants it to be or not. It’s also an important source of clues to dissent within the Fed’s policy making committee, even if it can be as cryptic as it is crucial.

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