The Federal Reserve's rate-setting committee is about to be reshuffled, while renewed inflation concerns complicate central bank decision-making. The Fed cut its benchmark policy rate by 25 basis points earlier this month and signaled only two rate cuts in 2025. Chairman Powell made it clear that the central bank is entering a new phase, and the pace of future rate cuts is likely to be more gradual and depend on whether inflation moves lower. In addition to the seven Fed governors and the president of the New York Fed, the presidents of the 11 regional Federal Reserve banks will also take turns voting on interest rate decisions on the Federal Open Market Committee (FOMC). Institutions expect more disagreements on the FOMC in 2025. An assessment of the committee's voting members along the hawkish-dovish spectrum found that the differences in opinions among FOMC voting members will increase next year, with views scattered at both ends of the spectrum and less concentrated in the middle.
Weatherly
