UPSC Prelims Practice Questions — First goes Fed’s dot plot rate forecast, then guidance, and then a hike?
Q1. How many voting members constitute the U.S. Federal Open Market Committee (FOMC) at any given time?
Q2. In the context of U.S. monetary policy, the term "dot plot" most precisely refers to:
- A. A chart of anonymous individual projections by FOMC participants of the appropriate federal funds rate at year-ends and in the longer run.
- B. A scatter diagram relating inflation to unemployment used by the Fed to derive an internal Phillips curve.
- C. A network diagram of cross-bank settlement exposures compiled by the twelve regional Federal Reserve Banks.
- D. A daily dispersion plot of effective federal funds rate trades around the target range published in the H.15 release.
Q3. The "dot plot" was introduced as a component of the FOMC's Summary of Economic Projections under whose chairmanship and in which year?
- A. Alan Greenspan, 2006
- B. Ben S. Bernanke, 2012
- C. Janet L. Yellen, 2014
- D. Jerome H. Powell, 2018