Tag #Dot Plot

What are the primary drawbacks of the FOMC's dot plot, and how does it impact market stability?

The Federal Open Market Committee's (FOMC) dot plot, intended to enhance transparency, has become a source of market confusion and volatility. Its forecasting accuracy is around 50% for one-year projections, and the dispersion of individual member projections doesn't reflect actual voting patterns; FOMC decisions have been largely unanimous despite significant dot plot variation.