#Fed Officials Turn More Hawkish#

The Federal Reserve has announced its 2025 voting members, with an increased proportion of "hawkish" members, potentially leading to more disagreements in future decisions. Bloomberg believes that the diverse viewpoints among voting members will result in more disagreements, while Barron's argues that the change in voting members could tilt the Fed's decisions towards a "hawkish" stance in 2025. Reuters analysis suggests that Fed policymakers may again find themselves divided over time, particularly if the labor market cools faster than inflation. The increased presence of hawkish members on the Federal Open Market Committee could exacerbate the risk of disagreements, although this 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 the number of future rate cuts, with the number of rate cuts in 2025 reduced from four predicted in September to two. The median interest rate forecast has been revised upwards from 3.4% in September to 3.9%.