Major adjustment by the Federal Reserve: Internal disagreements may increase uncertainty about interest rate cuts

At the interest rate meeting in December 2024, the Federal Reserve made a “hawkish interest rate cut” beyond expectations, sending a signal to the market that it would slow down the pace of interest rate cuts in 2025. As the outlook for U.S. inflation becomes more complicated, the Federal Open Market Committee (FOMC), which sets interest rates at the Federal Reserve, will also undergo a "big change" in 2025, which may further promote the "hawkish" trend of its monetary policy. Information published on the Federal Reserve's official website shows that three of the four new voting members to be rotated in 2025 are regarded by the market as "hawkish" representatives.

2025 Federal Reserve Voting Committee Rotation

Three "hawks" and one "dove" join

Information published on the Federal Reserve’s official website shows that the FOMC will rotate four new members with voti...
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