Federal Reserve
Doves and Hawks
What U.S. Fed policymakers are saying about interest rates
Federal Reserve policymakers raised the US policy rate by a quarter of a percentage point at their September 15-16 meeting, and nearly all signaled they expect at least one more rate hike this year. Fed Chairman Kevin Warsh said the increase “removed a dose of accommodation” so as to make “timelier” progress toward the Fed’s 2% inflation goal, though he did not endorse the rate-path forecasts of his colleagues.
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%. Sixteen of 18 Fed policymakers see at least one more quarter-of-a-percentage point hike by the end of 2026, and half see a further hike in 2027. Warsh did not submit a rate-path projection.
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