The new lineup of the Federal Reserve FOMC voting members in the new year is expected to lead to a more polarized policy stance between doves and hawks

ChainCatcher news, the composition 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 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 assessment of the committee's voting members along the hawkish-dovish spectrum reveals that the opinions of next year's FOMC voting members will become more polarized, with views scattered at both ends of the spectrum and less concentrated in the middle.