The dot plot increases transparency over Fed operations, according to Julia Coronado, president and founder of MacroPolicy Perspectives, who used to work for the Fed’s board of governors.

The economists’ own projections largely match what they see as the “dot plot” with the top of the target range for the policy rate hitting 2.75% in December, 3% at the end of 2023, and a ...

The March 2025 dot plot anticipated two 25-basis-point reductions this year, two more next year, and a last one in 2027, a rate that could reduce to the mid-3% zone by the end of 2026.

The Fed’s dot plot is a chart updated quarterly that records each Fed official’s projection for the central bank’s key short-term interest rate, the federal funds rate.