Yahoo Finance

Fed dot plot explained: Central bank's economic forecasts for 2025

Following the Federal Reserve's latest 25-basis-point cut to interest rates in December, investors have their eyes on the central bank's economic projections for 2025. Yahoo Finance senior reporter Alexandra Canal joins Josh Lipton in breaking down the Fed's "dot plot" capturing the Federal Open Market Committee's (FOMC) forecasts on inflation and expected rate cuts. The dot chart indicates that FOMC members' outlook on the amount of interest rate cuts in 2025 will decrease, the majority now expecting only two cuts for next year. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Josh Lynch.