Federal Reserve
Doves and Hawks
What U.S. Fed policymakers are saying about interest rates
Federal Reserve policymakers are expected to leave short-term borrowing costs unchanged at their October 27-28 meeting. Many of them said they felt they had time to wait for more data before deciding if they need to follow their September rate hike with another increase. Inflation continues to run above the Fed’s 2% target, pushed up by higher energy prices stemming from the Middle East conflict as well as demand for AI, with some lingering effects from higher tariffs as well.
Here is a look at Fed officials’ recent comments, sorting them under the labels “dove” and “hawk” as shorthand for their monetary policy leanings. A dove is more focused on risks to the labor market and may be inclined to cut rates, while a hawk is more focused on the threat of inflation and may be more open to rate hikes.
Note
The policy rate target range after the September hike is 3.75%-4.00%. A majority of Fed policymakers see one more quarter-of-a-percentage point hike by the end of 2026.
Sources and voting rotation
The Fed’s seven governors are nominated by the president and confirmed by the Senate. Each votes at every Federal Open Market Committee meeting, held eight times a year. All 12 regional Fed presidents discuss and debate monetary policy at the meetings, but only five cast votes, including the New York Fed president and four others who vote for one year at a time on a rotating schedule. Fed bank presidents are picked by the directors of their own regional banks, subject to approval by the Fed Board. The Atlanta Fed is seeking a new president after Raphael Bostic retired in February.
Header background photo by
Dado Ruvic