Federal Reserve
Doves and Hawks
What U.S. Fed policymakers are saying about interest rates
Federal Reserve policymakers held short-term borrowing costs steady at their April 28-29 meeting, Jerome Powell’s last as Fed chair, and kept language in their post-meeting statement indicating that their next move is likely to be an interest-rate cut. Several, including three of the Fed’s 12 voters, wanted to nix that easing bias given upward pressure on inflation from higher oil prices due to the Iran war.
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 want to cut rates more quickly, while a hawk is more focused on the threat of inflation and may be more cautious about rate cuts.
Note
The current policy rate target range is 3.50%-3.75%. The median of Fed policymaker projections in March was for one quarter-of-a-percentage point cut by the end of 2026. The Fed is due to release fresh projections at its June meeting, expected to be the first chaired by Kevin Warsh.
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.
Header background photo by
Dado Ruvic