#Fed Officials Turn More Hawkish#

The Federal Reserve's 2025 voting committee roster has been released, with an increase in "hawkish" members, potentially leading to more policy disagreements. Bloomberg believes the diverse committee stance will reduce neutrality and exacerbate divisions. Barron's Weekly suggests the rotation of voting members could tilt the Fed's decisions toward a "hawkish" stance in 2025. Reuters argues that disagreements among policymakers could resurface over time, especially if the labor market cools faster than inflation. While the increase in "hawkish" members may heighten the risk of disagreements, it may not alter policy outcomes. The Fed will hold eight meetings in 2025, scheduled for January, March, May, June, July, September, October, and December. The dot plot released in December 2024 by the Fed indicates a reduction in future rate cuts, with the number of rate cuts in 2025 reduced from four predicted in September to two, and the median interest rate forecast revised upward from 3.4% in September to 3.9%.