Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year.
The Fed announced today that it intends to raise the benchmark Fed funds rate to a range between 1.25% and 1.5%.
The "dot plot," part of the Federal Open Market Committee's Summary of Economic Projections released along with its policy decision statement, shows where each participant in the meeting thinks the fed funds rate should be at the end of the year for the next few years and in the longer run.
The Fed releases those predictions in a chart that includes a dot for each of the members at their target interest rate level for each period.
While the "dot plot" is not an official policy tool, it provides some insight into how committee members feel about economic and monetary conditions going forward. Indeed, several commenters on Wall Street consider the chart to be pretty important, as it could give a sense of how many more hikes are coming in the next year.
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