The dot plot, decoded When the central bank releases its Summary of Economic Projections each quarter, Fed watchers focus obsessively on one part in particular: the so-called dot plot.

The dot plot is best explained with an example, so to illustrate how it works, here's a real-world example of a Federal Reserve dot plot and how to interpret it.

The dot plot, decoded When the central bank releases its Summary of Economic Projections each quarter, Fed watchers focus obsessively on one part in particular: the so-called dot plot.

The dot plot represents projections by each Fed official of future fed funds rates. Each dot on the chart represents one Fed official. However, the dot plot is anonymous, so investors can’t tie ...

The dot plot was invented in late 2011, at a time when Fed officials were considering how to prepare markets for the shift they hoped to make away from the unprecedented array of monetary support ...

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.