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 thinks rates will be in the coming years. You'll see this chart every few months after Fed meetings, and it matters because investors watch it closely—if the dots suggest rates are going higher, stocks often fall, and if they suggest rates are staying low, stocks typically rise. For example, if most dots cluster around 5% for next year but a few sit at 4%, that tells you there's disagreement about the path forward. It's basically the Fed's way of telegraphing its intentions to the market.