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What is the Fed's "dot plot" and why is it useful?
Helen Kebede
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What is the Fed's "dot plot" and why is it useful?
What is the Fed's "dot plot" and why is it useful?
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Macroeconomics
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3
rd
Authors:
Acemoglu, Laibson, List
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The "dot plot" shows the future federal rate recommendation of individual members of the FOMC. Each dot represents the midpoint of the member's recommended target range for the future federal funds rate. Even though recommendations vary widely in the dot plot, the plot reduces the likelihood of policy surprises especially when considering credit markets.
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