CoinVoice has recently learned that, according to Jinshi reports, the annual changes in the composition of the Federal Reserve's FOMC voting committee next year may slightly increase resistance to further rate cuts. Compared to the outgoing committee members, the incoming members are more hawkish. TD Securities analyst Oscar Munoz stated, 'This opens the door for more dissenting votes next year.'
At the FOMC meeting in December, 4 of the 19 decision-makers at the Federal Reserve wrote down forecasts indicating that this rate cut was inappropriate, with Cleveland Fed President Harker casting a dissenting vote. Harker will exit the FOMC next year, to be replaced by Chicago Fed President Goolsbee, who believes that the policy rate needs to be significantly lowered next year and is clearly more dovish than Harker. However, the other two new committee members—St. Louis Fed President Musalem and Kansas City Fed President Schmidt—will make the 2025 committee's stance more hawkish, replacing the centrist Atlanta Fed President Bostic and San Francisco Fed President Daly.
TD Securities analysts speculate that Musalem is one of the four policymakers who submitted forecasts opposing this rate cut, with another likely being Schmidt, both of whom have hinted at some hesitation regarding further rate cuts. The fourth may be Fed Governor Bowman, who opposed a 50 basis point cut in September but may shift to support this week's cut during the two-day meeting. [Original link]
