New Year, New Composition of the Federal Reserve FOMC Voting Members, Policy Stance Expected to Become More Polarized Between Doves and Hawks

CoinVoice has learned that the composition of the Federal Reserve's interest rate-setting committee is about to change, while the renewed concerns about inflation make the central bank's 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 has clearly stated that the central bank is entering a new phase, and future interest rate cuts may be more gradual, depending on whether inflation declines. In addition to the seven members of the Federal Reserve Board and the President of the New York Fed, the presidents of 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 within the FOMC in 2025. An assessment of the voting members of the committee along the hawkish-dovish spectrum reveals that disagreements among FOMC voting members will intensify next year, with views scattered at both ends of the spectrum and less concentrated in the middle. [Original link]