Economics
Fed’s Policymaking Panel Tilts Even More Dovish in 2021 Rotation
- FOMC unlikely to even consider rate hike amid pandemic rebound
- New FOMC voters could influence debate over asset purchases
This article is for subscribers only.
Changes to the Federal Reserve’s interest-rate setting panel will make the U.S. central bank even less likely to tighten monetary policy in the new year, no matter how much of a jolt the economy gets from the rollout of Covid-19 vaccines.
In the annual rotation of voters on the Federal Open Market Committee, the four regional Fed presidents who receive that privilege in 2021 will be marginally more dovish -- or inclined to favor easy policy -- than the four they replace. The most notable shift comes as Chicago’s Charles Evans, one of the most predictably dovish officials, takes the vote held this year by Cleveland’s Loretta Mester, a relatively hawkish figure on the panel.