New Year, New Lineup for Federal Reserve FOMC Voting Members; Policy Stance Expected to Be More Polarized Between Doves and Hawks

According to ChainCatcher, the lineup of the Federal Reserve's rate-setting committee is about to change, while renewed inflation concerns are making central bank decisions more complex. Earlier this month, the Federal Reserve lowered the benchmark policy rate by 25 basis points and hinted that there would only be two rate cuts in 2025.

Chairman Powell clearly stated that the central bank is entering a new phase, and future rate cuts may be more gradual, depending on whether inflation decreases. In addition to the seven members of the Federal Reserve Board and the President of the New York Fed, the presidents of the 11 regional Federal Reserve banks will also take turns voting on interest rate decisions in the Federal Open Market Committee (FOMC). Institutions expect more divergence in the FOMC in 2025. An evaluation of the committee's voting members along the hawkish-dovish spectrum found that disagreements among FOMC voting members next year will intensify, with opinions scattered at both ends of the spectrum and less concentrated in the middle.