{"id":22973,"date":"2024-12-27T04:37:22","date_gmt":"2024-12-27T04:37:22","guid":{"rendered":"http:\/\/www.thinkadvisor.com\/2024\/12\/26\/who-will-vote-on-fed-policy-next-year\/"},"modified":"2024-12-27T04:37:22","modified_gmt":"2024-12-27T04:37:22","slug":"who-will-vote-on-fed-policy-next-year","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/12\/27\/who-will-vote-on-fed-policy-next-year\/","title":{"rendered":"Who Will Vote on Fed Policy Next Year?"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/904844981\/0\/thinkadvisor.jpg\"><img decoding=\"async\" src=\"https:\/\/feeds.feedblitz.com\/-\/904844981\/0\/thinkadvisor.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<p><!--&gt; \n\n<div data-v-dede5a56>\n\n<p>\u201cThe time may be approaching to consider slowing the pace of interest rate reductions, or pausing, to carefully assess the current economic environment, incoming information and evolving outlook,\u201d he <a href=\"https:\/\/blinks.bloomberg.com\/news\/stories\/SNZ2KXDWRGG0\">said<\/a>.<\/p>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p><b>Jeff Schmid<\/b><\/p>\n\n\n\n<ul class=\"rte2-style-ul\" id=\"rte-b7934511-c404-11ef-b138-21080d6c3f6c\"> \n\n<li>Kansas City Fed president since August 2023.<\/li>\n\n \n\n<li>This will be Schmid\u2019s first time voting on the FOMC.<\/li>\n\n <\/ul>\n\n \n\n<figure id=\"figure_00000194-0624-d237-a5bf-2effeb4f0001\" align=\"alignnone\"><img decoding=\"async\" id=\"00000194-0624-d237-a5bf-2effeb4f0001\" class=\"alignnone\" src=\"https:\/\/images.thinkadvisor.com\/cdn-cgi\/image\/format=auto,fit=contain\/http:\/\/k2-prod-alm.s3.us-east-1.amazonaws.com\/brightspot\/a1\/54\/98026ae047a5970b1b4aa76b0061\/422505488.jpg\"> \n \n<figcaption>Jeff Schmid<\/figcaption>\n \n <\/figure>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p>Schmid has emphasized there is uncertainty over where interest rates will ultimately settle. Officials largely agree that policy is restraining the economy since the Fed\u2019s benchmark rate lies above most estimates of the so-called neutral rate, which neither restricts nor promotes economic activity. <\/p>\n\n<\/div>\n\n --> <\/p>\n<div data-v-dede5a56>\n<p>But there is disagreement over how far officials need to cut to reach that neutral level.<\/p>\n<\/div>\n<p><!--&gt; --> <\/p>\n<div data-v-dede5a56>\n<p>Schmid has said a slower pace of rate cuts will allow officials to find out.<\/p>\n<\/div>\n<p><!--&gt; --> <\/p>\n<div data-v-dede5a56>\n<p>\u201cWhile I support dialing back the restrictiveness of policy, my preference would be to avoid outsized moves, especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility,\u201d Schmid <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-10-21\/fed-s-schmid-favors-slower-pace-of-rate-cuts-amid-uncertainty\">said<\/a> on Oct. 21.<\/p>\n<\/div>\n<p><!--&gt; \n\n<div data-v-dede5a56>\n\n<p><b>Susan Collins<\/b><\/p>\n\n\n\n<ul class=\"rte2-style-ul\" id=\"rte-c58ed440-c404-11ef-b138-21080d6c3f6c\"> \n\n<li>Boston Fed president since July 2022.<\/li>\n\n \n\n<li>Collins was last a regularly voting member on the FOMC in 2022.<\/li>\n\n <\/ul>\n\n \n\n<figure id=\"figure_00000194-062b-d1d9-abf4-2eefa8600000\" align=\"alignnone\"><img decoding=\"async\" id=\"00000194-062b-d1d9-abf4-2eefa8600000\" class=\"alignnone\" src=\"https:\/\/images.thinkadvisor.com\/cdn-cgi\/image\/format=auto,fit=contain\/http:\/\/k2-prod-alm.s3.us-east-1.amazonaws.com\/brightspot\/26\/77\/c8247a104ef59e134b233766a838\/422505439.jpg\"> \n \n<figcaption>Susan Collins<\/figcaption>\n \n <\/figure>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p>Collins <a href=\"https:\/\/blinks.bloomberg.com\/news\/stories\/SN7SQNDWLU68\">said<\/a> in mid-November that although the final destination for policy is uncertain, \u201csome additional policy easing is needed.\u201d She reiterated that rates are not on a preset path, while describing the economy as \u201cin a good place overall.\u201d<\/p>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p>\u201cThe policy adjustments made so far enable the FOMC to be careful and deliberate going forward, taking the time to holistically assess implications of the available data for the outlook and the associated balance of risks,\u201d Collins said.<\/p>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p><b>Austan Goolsbee<\/b><\/p>\n\n\n\n<ul class=\"rte2-style-ul\" id=\"rte-d1fb10e1-c404-11ef-b138-21080d6c3f6c\"> \n\n<li>Chicago Fed president since January 2023.<\/li>\n\n \n\n<li>Goolsbee was last a regularly voting member on the FOMC in 2023.<\/li>\n\n <\/ul>\n\n \n\n<figure id=\"figure_00000194-062c-d237-a5bf-2eff1d790001\" align=\"alignnone\"><img decoding=\"async\" id=\"00000194-062c-d237-a5bf-2eff1d790001\" class=\"alignnone\" src=\"https:\/\/images.thinkadvisor.com\/cdn-cgi\/image\/format=auto,fit=contain\/http:\/\/k2-prod-alm.s3.us-east-1.amazonaws.com\/brightspot\/63\/29\/6d7b7b74426da01e1cdfed53913c\/422505612.jpg\"> \n \n<figcaption>Austan Goolsbee<\/figcaption>\n \n <\/figure>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p>Goolsbee has repeatedly said he views the Fed\u2019s policy stance as well above neutral \u2014 a view he reiterated after December\u2019s rate cut.<\/p>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p>He said he adjusted his outlook for interest rates a little higher for next year, but still expects borrowing costs to fall.<\/p>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p>\u201cI\u2019ve made the rate path a little bit more shallow in 2025, but I\u2019ve been saying that the overall thread is that inflation is way down,\u201d Goolsbee <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-12-20\/fed-s-goolsbee-now-sees-shallower-path-for-rate-cuts-next-year\">said Friday<\/a>. \u201cI believe we\u2019re on path to 2% and over the next 12-18 months rates can still go down a fair amount.\u201d<\/p>\n\n<\/div>\n\n--> <!--&gt; \n\n<div data-v-dede5a56>\n\n<p><i>(Photo credits: Bloomberg)<\/i><\/p>\n\n \n\n<p class=\"disclaimer_message\">Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n\n <\/div>\n\n--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>But there is disagreement over how far officials need to cut to reach that neutral level. Schmid has said a slower pace of rate cuts will allow officials to find out. \u201cWhile I support&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":22974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/12\/who-will-vote-on-fed-policy-next-year-scaled.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22973"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22973"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22973\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/22974"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}