Fed's Dot Plot to Reveal Insights on Potential Rate Cuts

The upcoming update to the Federal Reserve’s “dot plot” will provide insights into the central bank’s commitment to easing monetary policy. While Chair Jerome Powell and the Fed are expected to maintain interest rates for the seventh consecutive meeting, economists are divided on the number of rate cuts that will be indicated in the forecasts. A Bloomberg survey shows that 41% of economists anticipate two cuts, while others expect one or none. Since March 2022, the Fed has raised its benchmark rate by over five percentage points and has held rates at a two-decade high since July.