Here’s how to read and interpret the dot plot.
Want to know where interest rates are headed? During tumultuous economic times, it’s normal to search for answers about what’s to come for your finances.
While there’s no way to predict exactly what will happen, the Federal Reserve has tools that some people look to for insights. Among them is the Fed’s dot plot, which shows where the Fed’s policymakers see interest rates headed in the next few years.
This chart, which is published quarterly, certainly can’t guarantee what’s to come. In fact, some say it’s not worth paying attention to at all. But others look to the dot plot for insights into what the Fed will do in the short term.
Sarah C. Brady | Yahoo Finance