On January 8th, Matthew Luzzetti, an economist at Deutsche Bank, stated that the four regional Federal Reserve chairpersons who will gain voting rights in the Federal Reserve’s FOMC this year may make more controversial policy decisions. Chicago Fed President Goolsby is seen as one of the most dovish voices on the committee, while St. Louis Fed President Musalem and Kansas City Fed President Schmid are seen as potential hawks. It is worth noting that neither Musalem nor Schmid had previously voted on the committee. Luzzetti said, “The higher the degree of diversification, the greater the possibility of divergence, especially because if inflation continues to remain high and the labor market is weakening, this will create tension in the Fed’s dual mission and make its response vague
Scan code to share