1. What is the Fed Dot Plot Median?

The median from the Federal Reserve's dot plot represents the middle projection of FOMC members for key economic indicators like interest rates. It provides insight into the central tendency of policymakers' expectations.

2. How Does the Calculator Work?

The calculator uses the standard median calculation:

For even number of projections, the median is the average of the two middle values.

3. Importance of the Median in Fed Dot Plots

Details: The median projection is closely watched by markets as it indicates the consensus view of FOMC members regarding future policy rates.

4. Using the Calculator

Tips: Enter all projections separated by commas (e.g., "2.5, 3.0, 3.5, 4.0"). The calculator will sort them and find the median value.

5. Frequently Asked Questions (FAQ)

Q1: Why is the median important in Fed dot plots?
A: The median represents the central tendency of FOMC members' views, filtering out extreme projections on either end.

Q2: How often is the dot plot updated?
A: The Fed releases updated dot plots quarterly, at every other FOMC meeting.

Q3: What does each dot represent?
A: Each dot represents one FOMC member's projection for the appropriate policy rate at the end of various calendar years.

Q4: Are all projections weighted equally?
A: Yes, the median calculation treats all projections equally, regardless of which FOMC member made them.

Q5: Why might the median change between meetings?
A: The median can change due to evolving economic conditions or changes in FOMC membership.