Federal Reserve
Doves and Hawks
What U.S. Fed policymakers are saying about interest rates
Federal Reserve policymakers are expected to hold short-term borrowing costs steady at their June 16-17 meeting, but to debate whether to adjust language in the post-meeting statement to signal the possibility of a future rate hike, given above-target inflation and upward pressure from higher fuel and food prices due to the Iran war. It will be Kevin Warsh’s first as Fed chair. He’ll be added to this graphic once he begins to speak publicly in his new role.
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 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. Fresh quarterly projections are due to be published in June.
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