The Dot Plot for March 2022 shows the median rate at the end of 2022 at 1.9% vs 0.9% in December. In 2023 the expectations are for 2.8% vs 1.6% median (and 11 of 18 at 1.9%) in December.. They also see 2.8% in 2024.

FOMC dot plot from March 2022

The Dot Plot in December showed:

The Dot Plot from December 2021

The table of the central tendencies from March 2022 now shows:

Central tendencies from March 2022 meeting

Summary of central tendencies from March compared to December now shows for 2022:

  • GDP lowered to 2.5% to 3.0% from 3.6% to 4.5% in 2022
  • Unemployment rate near unchange near unchangedd at 3.4% to 3.6% from 3.4% to 3.7% in 2022
  • PCE  inflation 
    Inflation
    Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.
    Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.
         Read this Term     much higher at 4.1% to 4.7% from 2.2% to 3.0% in 2022
  • Core PCE inflation much higher at 3.9% to 4.4% from 2.5% to 3.0% in 2022

In 2023, they see:

  • GDP near unchanged at 2.1% to 2.5%
  • unemployment rate near unchanged at 3.3% to 3.6%
  • PCE inflation higher at 2.3% to 3% from 2.1% to 2.5% in December
  • core PCE inflation higher at 2.4% to 3% from 2.1% to 2.4% in December