New Fed Voters Will Fall in Line With Powell
It should be a boring year for the Fed in 2020, which is what the central bank’s chairman would want.
Federal Reserve Chairman Jerome Powell is looking forward to uneventful 2020.
Photographer: Bloomberg
It’s that time of year at the Federal Reserve, when the voting members that comprise the Federal Open Market Committee undergo their annual rotation. Don’t, however, expect to see any changes in policy this year now that the more hawkish central bankers have come to terms with last year’s dovish pivot. For 2020, the Fed anticipates holding policy rates steady as the economy enjoys some smooth sailing, and it’s a good bet the central bank will achieve that outcome.
Policy making turned more contentious last year as Kansas City Federal Reserve President Esther George and Boston Federal Reserve President Eric Rosengren dissented against all three interest rate cuts. Both rotate off their voting positions this but will be replaced with two other central bankers skeptical of 2019’s rate cuts, Cleveland Federal Reserve President Loretta Mester and Philadelphia Federal Reserve President Patrick Harker.