#Fed Officials Turn More Hawkish#

The Federal Reserve's 2025 rotating voting members will see an increase in "hawkish" members, potentially leading to more policy disagreements. Bloomberg believes that the dispersed voting member stances will reduce neutral situations and exacerbate disagreements. Barron's Weekly argues that the rotation of voting members could tilt the Fed's decisions in 2025 towards a "hawkish" stance. Reuters analysis 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 in December 2024 by the Fed indicated a reduction in the number of future rate cuts, decreasing the number of rate cuts in 2025 from four predicted in September to two. The median interest rate forecast was also revised upwards from 3.4% in September to 3.9%.