Hawks, Doves, and Centrists: How FOMC Voting Members' Shifts May Affect Rate Policy in 2024
In 2024, the voting roster of FOMC will see changes due to the annual rotation of four regional bank presidents on and off the board. Minneapolis, Dallas, Chicago, and Philadelphia Reserve Bank presidents will be replaced by Atlanta, San Francisco, Cleveland, and Richmond Fed presidents as voting members.
In the incoming FOMC voting members for 2024, there will be two hawkish members, one dovish member, and one centrist member.
Specifically, two hawkish officials - Neel Kashkari, President of the Minneapolis Fed, and Lorie Logan, President of the Dallas Fed - will no longer serve as FOMC voters in 2024. Additionally, dovish Philadelphia Fed President Patrick Harker will also lose his voting position next year.
In 2024, the group of FOMC voters will welcome Raphael Bostic, the dovish President of the Atlanta Fed, and two hawkish members - Loretta Mester, President of the Cleveland Fed, and Tom Barkin, President of the Richmond Fed.
Meanwhile, Mary Daly, who holds a neutral stance as President of the San Francisco Fed, will take on a voting role, while Goolsbee, the neutral-leaning President of the Chicago Fed, will no longer be a part of the voting committee in 2024.
The board and the New York Fed President will maintain their permanent voting positions in 2024.
The following is the composition of the 2024 FOMC voting members:
Federal Reserve Officials' Latest Comments
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, has stated that he does not anticipate a need to cut interest rates next year. Bostic stressed the importance of the US central bank being decisive and measured as officials evaluate their future policy actions.
For me, I'm thinking inflation is going to come down relatively slowly in the next six months, which means there’s not going to be urgency for us to pull off our restrictive stance," Bostic said.
While noting the Fed is "making good progress on inflation," Richmond Fed president Tom Barkin said the rate cut predictions are just forecasts. Though not ruling out reductions, Barkin stresses 2024 policy will follow where data leads, resulting in the Fed making “judgments accordingly.”
San Francisco Fed President Mary Daly said that cuts to the US central bank's benchmark rate are likely to be appropriate next year because of an improvement in inflation this year, the Wall Street Journal reported.
The Fed must make sure "we don't give people price stability but take away jobs," Daly said. The Fed aims to bring inflation down to its 2% goal, but wants to "continue to do this gently, with as few disruptions to the labor market as possible."
Federal Reserve Bank of Cleveland President Loretta Mester said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, the Financial Times reported.
The next phase is not when to reduce rates, even though that's where the markets are at. It's about how long we need monetary policy to remain restrictive in order to be assured that inflation is on that sustainable and timely path back to 2%," Mester said.
Source: Reuters, Bloomberg, WSJ, Yahoo Finance
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Rigid Bull : The Fed should be neither Hawkish or Dovish. They should decide based on Current Data. The Fed were too late to raise interest rates and will probably be too late to lower them.
we are heading for Deflation over the next 6 months but interest rates are too high and the FED will not be able to lower them fast enough.