Deutsche Bank: The new Fed voting committee in 2025 may generate more dissent
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2025-01-08 06:02 6,802
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Golden Finance reported that Deutsche Bank economist Matthew Luzzetti said that the four regional Fed presidents who will gain voting rights at the Federal Reserve 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 Mussallem and Kansas City Fed President Schmid are seen as potential hawks. Notably, neither Mussallem nor Schmid had previously voted on the committee. “The more diversified you are, the greater the potential for divergence, especially because if inflation persists high and the labor market is weakening, that would create tensions in the Fed’s dual mandate and make the Fed The response becomes blurry.”