Fed Dot PlotSEP

The dot plot is a chart in the Federal Reserve’s quarterly Summary of Economic Projections showing where each FOMC participant expects the policy rate to be at the end of coming years. It shows officials’ views, not a commitment.

The Fed dot plot is a chart in the FOMC's Summary of Economic Projections showing where each policymaker thinks the federal funds rate should be at the end of coming years and in the longer run. Markets read it for the likely path of rates. Each dot is one person's view, not a committee promise.

Category
Fundamentals and Macroeconomics
Reading time
3 min
Also called
FOMC dot plot, Dot chart, Policy path projections
Updated

The dot plot in plain words

Each dot is one official's view of where the middle of the fed funds target range should be, rounded to the nearest eighth of a point.1

Together the dots show where FOMC participants think the policy rate should be in each of the next few years and over the long run.2

It only comes out with some meetings — the ones marked on the Fed's calendar as having a Summary of Economic Projections.3

How to read the dot plot

  1. Find the right meetings

    Find the meetings flagged for a Summary of Economic Projections.3

  2. Read one dot

    Read each dot as one person's view of the right midpoint for the target range.1

  3. Find the median

    Count to the middle dot for each year.

  4. Compare with markets

    Set the median beside futures-implied rates.

  5. Read the longer run

    Treat the longer-run dots as each official's estimate of where rates eventually settle.4

  6. Remember the conditions

    Remember each dot reflects that official's own view of the right policy, as set out in the projections.4

Worked examples

Example 1 — Finding the median

Median 3.375%

Hypothetical 19 dots for next year: the 10th-ranked dot sits at 3.375%.

Example 1 — Finding the median — calculation
Dots19
Median10th dot
Value3.375%

Each dot is one person's view; the median summarises them, it is not a decision.1

Example 2 — Dots vs futures

Gap noted

Hypothetical median shows two cuts; futures price four.

Example 2 — Dots vs futures — calculation
Dot plot2 cuts
Futures4 cuts
Gap2 cuts

A Richmond Fed president warned that analysts overemphasize the SEP, particularly the “dot plot”, so the gap does not mean the market is wrong.5

Example 3 — Shifting dots

Hawkish shift

Hypothetical dots move up 0.5 points between meetings.

Example 3 — Shifting dots — calculation
June median3.0%
September median3.5%

The higher dots reflect each participant's view of appropriate monetary policy, which shifts with new data.4

Dot plot vs futures pricing

AspectDot plotRate futures
WhoFOMC participantsMarket traders
FrequencyFour times a yearContinuous
TypeIndividual projectionsMarket-implied path
CommitmentNoneNone

Where the dot plot is used

Advantages and disadvantages

Advantages

  • Shows the range of views inside the FOMC.
  • Published on a fixed schedule.
  • Includes a longer-run rate estimate.

Disadvantages

  • Not a commitment or forecast of the committee.
  • Dots are anonymous.
  • Can change quickly with data.
  • Markets may overreact to it.

Going deeper

Read as far as you need. Each level builds on the one before it.

What a dot means

Beginner

One dot equals one participant's view of the right midpoint for the fed funds target range.1

Conditional projections

Intermediate

Each dot assumes the policy path that the official personally thinks best meets the Fed's goals of maximum employment and stable prices.4

Criticism

Advanced

Some Fed officials are sceptical, arguing the chart implies more certainty about the economy's path than anyone has.2 Another warned that it makes analysts over-focus on the projections.5

Common mistakes

  1. Treating it as a promise

    Dots are views, not commitments.

  2. Ignoring dispersion

    A wide spread signals uncertainty.

  3. Reading only the median

    Look at the shape of all dots.

  4. Expecting it every meeting

    It comes with SEP meetings only.

Check your understanding

Test yourself before moving on. Each answer comes with an explanation.

Q1Each dot represents…
Q2How many dots are above the median of 19?

Key points to remember

  1. The dot plot is part of the SEP.
  2. Each dot is one participant's rate view.
  3. Markets focus on the median dot.
  4. It is not a policy commitment.
  5. It appears with SEP meetings only.

Frequently asked questions

How often is it released?

Four times a year, with SEP meetings.

Are the dots named?

No, they are anonymous.

Does the Fed follow the dots?

Not necessarily; the path changes with data.

Further learning

Sources

This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.

  1. Board of Governors of the Federal Reserve System. Guide to the Summary of Economic Projections (opens in a new tab) Checked .
  2. Federal Reserve Bank of St. Louis. St. Louis Fed's New Approach to Near-Term Projections (opens in a new tab) Checked .
  3. Federal Reserve Board. Meeting calendars and information (FOMC) (opens in a new tab) Checked .
  4. Board of Governors of the Federal Reserve System. Summary of Economic Projections, September 16, 2026 (opens in a new tab) Checked .
  5. Federal Reserve Bank of Richmond. Talking About Outcomes (speech by Tom Barkin) (opens in a new tab) Checked .

Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.