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.

These predictions are commonly displayed via a dot plot where each dot represents a FOMC participant's prediction of the Fed Funds Rate at the end of each calendar year.

A look at the dot-plot in June, the last time the Fed updated the chart, showed that no one expected rates to finish the year at their current level. Here is the dot plot from the June meeting: ...

Now we've seen this, the dot plot, a million times. But you probably haven't seen this chart, which actually is also part of the dot plot document.

Going forward, check out the CME FedWatch tool, and keep an eye on the updated Dot Plots. They’ll provide you valuable information as you chart the course for your own portfolio.

The Fed’s dot plots are a terrible predictor of future rates policy. Watch the yield curve in the next week or two for a better sense of how the market is pricing the future of rates.

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.