U.S. Economy

The Fed's Misunderstood Dots

Interest-rate projections shouldn't be seen as promises.
by
Narayana Kocherlakota

What's in a dot?

 Screenshot: Mark Whitehouse

Every three months, the U.S. Federal Reserve publishes a chart -- known as the "dot plot" -- showing where various officials think the central bank's interest-rate target should be over the next few years. And every three months, investors and the media consistently misinterpret it.

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