What is the US Federal Reserve's dot plot?
Jun 29, 12:06

The US Federal Open Market Committee (FOMC) uses a dot plot to convey interest rate outlook to financial markets. Each dot shows where a respective FOMC member expects the federal funds rate to be at the end of the current and next few calendar years along with a long-term view. It represents expectations of FOMC policymakers - both voting and non-voting members - regarding quantum of rate increases, or decreases, from meeting to meeting. It adjusts its expectations based on economic trends and global events. Recently, Jayanth Varma, a member of the Monetary Policy Committee (MPC) said that the time was “ripe” for dot-plot type projections for policy rate in India.

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