Ep. 98 - Reading Between the Dots | How to Read the Federal Reserve’s “Dot Map”

Have you ever heard of the Federal Reserve’s “dot plot” map? In this episode, Quinton provides an in-depth explanation of this map. He outlines how the dot plot was created in 2012 during the Great Recession recovery as a way for the Fed to provide forward guidance on interest rates.

The dot plot is released quarterly and shows projections for the Fed funds rate from Fed officials over the next few years. Each dot represents one Fed member's view of where rates could be in the future. If you’ve ever wondered what this map is or how to read it, this episode is for you!

[00:00 - 03:19] - Introduction to the Fed's Dot Plot Map

[03:20 - 06:31] - How to Decode the Dot Plot Map

[06:32 - 08:41] - The Dot Plot Effect: How Markets Obsess Over the Dots

[08:41 - 10:46] - The Dot Plot isn’t Always Accurate

[10:47 - 12:51] - Reading Between the Dots - Key Takeaways

Quotes:

"Wishful thinking doesn't always come out to what the actual outcome is is" - Quinton Harris

“The Federal Reserve is going to have to let off the gas a little bit here, because it's going to start to stifle the economy and then something's going to break in the financial system.” - Quinton Harris ________________________

Search for “What’s Your 1 More” on YouTube to enjoy highlights and full video episodes.

Watch the podcast on Spotify for full video episodes, Q&As, and community polls!

Do you want to master your finances and financial leadership? Connect with us on Facebook, Twitter, and Instagram.

Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/.

Please subscribe, share, and leave a review to let us know you want to keep the content coming!