The Federal Reserve's dot plot is published quarterly after each FOMC meeting, showing where each of the 19 Fed officials expects the federal funds rate to be at year-end for the next several years. Each dot represents one official's projection. The median dot (middle value) is most closely watched by markets. To read it effectively: (1) Focus on the median for the current and next year — this drives near-term rate expectations. (2) Compare the new dot plot with the previous one to spot shifts in hawkish/dovish sentiment. (3) Watch the dispersion (spread) of dots — wide dispersion signals high uncertainty among policymakers. (4) Compare the dot plot median with market-implied rates from Fed funds futures — divergences often create trading opportunities. The dot plot moves bond yields, equity valuations, and the dollar within minutes of release.