The US Federal Reserve might turn out as a more hawkish one in 2017 compared to 2016, not just b because it forecasted a higher number of interest rates just like it did in the past two years but because it might actually deliver on those forecasts.
In one of our previous articles, named “FED hike Aftermath Series: How FOMC policy board looks in 2017?” we discussed the views of the current board members. Based on the previous commentaries, we tagged 6 of the 10 policymakers as doves, 2 of them as hawks and 2 of them unknowns. But the recent comments from two members suggest a different picture.
Charles Evans, the President of the Chicago Fed, whom we associated with being dovish over his position in the past turned out as a hawk. He said he is quite sure about two rate hikes but depending on the conditions he thinks that the Fed could even go for a third one.
We were not sure of the views of the Dallas Fed President Robert Steven Kaplan, who would be voting for the very first time. But he cleared the air when he said that the Fed can’t hike rates gradually or patiently as the economy is rapidly moving towards a full employment.
With new comments coming in the FOMC boards looks like the following:
Doves – Janet Yellen, Lael Brainard, William Dudley, Daniel Tarullo, and Neel Kashkari.
Hawks – Charles Evans, Patrick Harker, Stanley Fischer, and Robert Kaplan.
Unknown – Jerome Powell


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