#Fed Officials Turn More Hawkish#

The Federal Reserve's 2025 rotating voting member list has been updated, with an increase in the number of "hawkish" members, potentially leading to more disagreements in the Fed's policymaking process. Bloomberg believes that the divergence in voting member stances will reduce neutral situations and exacerbate disagreements. Barron's argues that the rotation of voting members could tilt the Fed's decisions in 2025 towards a "hawkish" stance. Reuters suggests that disagreements among Fed policymakers may resurface over time, especially if the labor market cools faster than inflation. While the increase in "hawkish" voting members may heighten the risk of disagreements, it may not alter the policy outcome. The Fed will hold eight meetings in 2025, scheduled for January, March, May, June, July, September, October, and December. The dot plot released by the Fed in December 2024 shows that the Fed has lowered the number of future rate cuts, reducing the number of rate cuts in 2025 from four predicted in September to two. The median interest rate forecast has been revised upwards from 3.4% in September to 3.9%.