Dot Plot (Fed Projections)

A Dot Plot is a chart where each Federal Reserve official places a dot showing their prediction for future interest rates. Think of it as a visual snapshot of what the Fed's decision-makers think will happen to borrowing costs over the next few years. You'll see these charts released after Fed meetings, and they matter because they signal whether rates are likely to rise, fall, or stay put—which directly affects everything from mortgage rates to stock valuations. For example, if most dots cluster higher on the chart, it suggests the Fed expects to raise rates soon, which typically makes bonds more attractive and can cool down stock enthusiasm. It's basically the Fed's crystal ball made public.