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Bloomberg Quint
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Who Votes On US Fed Policy Next Year Is Changing. Here’s What To Know
- New voters are set to rotate onto the Federal Reserve’s interest-rate-setting committee in 2025.
- The Federal Open Market Committee comprises of a rotating cast of presidents from 11 of the regional Fed banks, along with seven Fed governors and the president of the New York Fed.
- The key question facing the new voters and the committee is how quickly policymakers should lower rates still above the central bank’s 2% target.
- The debate could be complicated by a slew of potential policy changes from President-elect Donald Trump.
- Fed Governor Michelle Bowman voted against September’s decision to lower rates by a half percentage point, preferring a smaller cut.
- Should the policy questions raise additional dissents, it wouldn’t necessarily be a bad thing, said Don Kohn, a senior fellow at the Brookings Institution and a former Fed vice-chair.
- Jeff Schmid, the Kansas City Fed president, has emphasized that there is uncertainty over where interest rates will ultimately settle.
- In 2025, Susan Collins of Boston, Alberto Musalem of St. Louis, Jeff Schmid of Kansas City and Austan Goolsbee of Chicago will rotate onto the committee.
- It is expected that Austan Goolsbee and Susan Collins will support additional policy easing.
- Alberto Musalem, the St. Louis Fed president, has supported a patient approach to rate cuts.
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