INSUBCONTINENT EXCLUSIVE:
Washington: Federal Reserve projections show no interest-rate changes next year but the annual rotation among voters could still influence
policy as incoming members include an outspoken dove while two hawks depart.
Minneapolis Fed chief Neel Kashkari, who called vocally for
rate cuts during 2019, is the clear dove among the four new voters
demonstration of unity as the country heads into a US presidential election year.
They replace Kansas City Fed president Esther George and
The others departing are dove James Bullard from St
policy.
The yearly voter rotation among regional Fed presidents can foreshadow looming splits over policy that generate dissents, depending
on who gets the vote and how strongly they disagree with their colleagues
Williams, who also wields a permanent FOMC vote
That means Powell has six votes against the four in the hands of the remaining regional Fed chiefs, in the rare event that all four voted
As a result, she may start pushing for tighter policy if inflation picks up with unemployment at a 50-year low.
Kashkari (dove) He was an
outspoken advocate for cutting rates last year when inflation failed to pick up as expected
(centrist) The Dallas Fed chief sees a sluggish economy in 2020, so things would have to deteriorate for him to back easing policy further
But he told Bloomberg Television on December 18 that with the curve sloping upward, Fed policy is probably in the right place
Nor did he sound worried about inflation, saying the pricing power of businesses has been eroded by technology and he expects inflation to
weathering uncertainty caused by trade tension between the US and China
He has never dissented at an FOMC meeting since joining the Fed in 2015.