Dot Plot, Explained: How the Fed Forecasts Interest Rates
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The Federal Reserve's latest economic projections reveal a surprisingly shallow path for interest rate cuts in 2026, signaling that the policy will remain restrictive as the central bank contends with a resilient economy and sticky inflation.
There was a wide range of forecasts among Fed officials in the so-called “dot plot” for the path that interest rates could take. While additional rate cuts appear to be in store after Wednesday’s quarter-point reduction, the degree to which the Fed acts will depend on how these key economic forces play out.