One of the most dovish policymakers at the FOMC, Lael Brainard seems to be changing her tone towards monetary policy adjustments for 2017. In a speech to the John F. Kennedy School of Government at Harvard University, Ms. Brainard said that US economy is in a more stable growth path and can handle rate hikes, which would be appropriate soon. She said that the near terms risks to the US economy from abroad appear to have diminished and the risks are more balanced today than they had been for the preceding two years, “We are closing in on full employment, inflation is moving gradually toward our target, foreign growth is on more solid footing, and risks to the outlook are as close to balance as they have been in some time..”

While other policymakers including the Fed Chair Janet Yellen suggested that the Fed is in no hurry to reduce its record-high balance sheet, Ms. Brainard suggested that it might start before too long. As a member of the Board of Governors, Ms. Brainard is a permanent voting member. We at FxWirePro forecasted a decision or at least a discussion on the path reducing the balance sheet before the end of the year and after the rate reached above 1 percent.

These comments from Ms. Brainard changes our FOMC dashboard for March, which looks like below,

Doves –  Neel Kashkari.

Hawks – Janet Yellen, Charles Evans, Patrick Harker, Stanley Fischer, William Dudley, Lael Brainard, and Robert Kaplan

Unknown – Jerome Powell

Pls. note that one of the dovish members, Daniel Tarrullo has resigned and the position is yet to be filled.