Tags: Fed | Policy | Panel | Dovish

Fed Policy Panel's Composition Turns More Dovish

Tuesday, 03 Jan 2012 08:40 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The big question for U.S. monetary policy in 2012 is whether the Federal Reserve will ease further, after implementing Operation Twist in 2011.

The main determinant of Fed policy will be the economy, of course. It ended the year with some strength. The unemployment rate fell to 8.6 percent in November, and even in the weak third quarter, the GDP grew 1.8 percent.

To be sure, many experts expect the economy slow down this year. If it does, the composition of the Fed’s policymaking Federal Open Market Committee (FOMC) could play a large role in determining the central bank’s course of action.

The FOMC includes the seven Fed board members, the New York Fed president and four of the 11 remaining regional Fed presidents on a rotating basis.

The four presidents rotating out of the FOMC this year include the three most hawkish members: Narayana Kocherlakota of Minneapolis, Richard Fisher of Dallas and Charles Plosser of Philadelphia, The Wall Street Journal reports. All four voted against Operation Twist.

The newbies include John Williams of the San Francisco Fed, Cleveland’s Sandra Pianalto, and Dennis Lockhart of Atlanta. They’re all seen as more dovish than the departed.

Still, John Donaldson, director of fixed income at Haverford Trust, doesn’t anticipate large-scale quantitative easing by the Fed this year.

“We would expect to see perhaps some coordinated efforts between the Fed and other central bank to ease any strains on the system,” he tells Bloomberg.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved