The SEP shows central tendencies and ranges for real gdp growth, the unemployment-rate, headline and core-pce inflation, and the appropriate policy rate, which is rendered as the dot-plot.
Traders read it as a reaction function rather than a forecast. If the committee marks up its inflation forecast without marking up its rate path, that is dovish: it tells you they will tolerate the overshoot. If it marks down unemployment and marks up rates, that is hawkish.
Example: the SEP shifts 2026 core PCE from 2.4% to 2.6% and the median rate dot from 3.375% to 3.625%. The higher inflation is being met with tighter policy, so the front end sells off and the curve flattens.
Related: dot-plot, fomc, core-pce, unemployment-rate, neutral-rate