According to the median of the dot plot released by the Fed, the federal funds rate forecast for the end of 2026 was adjusted upward to 4.1% from the previous June forecast of 3.8%. This suggests that one more interest rate hike is expected within the year. According to the detailed breakdown of the dot plot, 12 of the 18 committee members predicted one more 25bp interest rate hike this year, 4 predicted two additional hikes, and 2 expected no further hikes.
