The Fed last week updated their dot plot. See the table below, which guides the Fed Funds rate to be around 1.5% by the end of next year, around 2.5% the year after, then around 3.5% the year after that. But, there’s only one problem with the chart below… it’s from 2014. Yet here we are, two years - and just two hikes later - with the Fed still telling us the next leg of the rates cycle is just beginning. The 2014 dot plot and the new one are both below for comparison.
Alex has a decade in the production and distribution of research for financial institutions and investment publications. He supported Livewire at its launch before then joining the team as Editorial Director.