2025 Federal Reserve FOMC Member Changes: Increase in Hawks, Decision-Making May Trend Hawkish

2025-01-05 18:47:16
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ChainCatcher news, according to the Federal Reserve's official website, in 2025 the Federal Reserve welcomed 2 "hawkish" voters, 1 "dovish" voter, and 1 neutral voter:

New voters:

  • Chicago Fed President Austan D. Goolsbee
  • Boston Fed President Susan M. Collins
  • St. Louis Fed President Alberto G. Musalem
  • Kansas City Fed President Jeffrey R. Schmid

Replaced voters:

  • Richmond Fed President Thomas I. Barkin
  • Atlanta Fed President Raphael W. Bostic
  • San Francisco Fed President Mary C. Daly
  • Cleveland Fed President Beth M. Hammack

Changes in the Federal Reserve's voting members may lead to shifts in policy. Bloomberg believes that the dispersion of voter positions may lead to more disagreements; Barron's believes that the rotation of voting members may tilt the Federal Reserve towards a hawkish stance in its 2025 decisions; Reuters believes that the increase in disagreements among voters may exacerbate risks in policy-making.

In addition, the Federal Reserve will hold 8 meetings in 2025, in January, March, May, June, July, September, October, and December. According to the dot plot from December 2024, the Federal Reserve has lowered the number of future rate cuts:

  • The number of rate cuts in 2025 has been reduced from the 4 predicted in September to 2.
  • The median interest rate forecast has been raised from 3.4% in September to 3.9%.
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