Fed Dot Plot Upgrades 2026 Interest Rate Forecast to 4.1% from 3.8%

The Federal Reserve's dot plot mid-point indicates a forecasted federal funds rate of 4.1% by the end of 2026, up from 3.8% projected in June. This adjustment suggests the possibility of one more interest rate hike this year. According to the detailed dot plot, 12 out of 18 committee members expect an additional 25 basis point increase this year, four anticipate two further hikes, and two believe no additional increases will occur.