Markets Position Ahead of Fed Meeting Later This Month; Hawks to Lose Ground with Additions of Williams, Pianalto
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During the Federal Reserve’s upcoming meeting on January 24-25th, CNBC’s Steve Liesman expects one of the main topics of discussion to be if another round of quantitative easing is necessary.
The Fed will announce its first-quarter predictions on interest rates during the meeting, something new. Liesman believes the Federal Open Market Committee will become more dovish this year due to the natural rotation of its presidents.
The four members who will be losing vote rights this year include, Richard Fisher of Dallas, Narayana Kocherlakota of Minneapolis, Charles Plosser of Philadelphia, and Charles Evans of Chicago. Notably, Evans is the only one of these officials who has not been hawkish in the past.
Two of the members will be replaced by two dovish members, John Williams of the San Francisco Fed and Cleveland's Sandra Pianalto. Dennis Lockhart of Atlanta will also be joining the voting process, but Liesman notes he is unlikely to dissent.
The latest primary dealer survey from the Fed suggested 60 percent of Wall Street’s analysts and economists expect the Fed to increase the size of its balance sheet. Financial markets are also expecting the Fed to act.
Over the past couple of months many sectors have been showing strong signs of growth. The retail group is definitely an exception. Many economists feel the positive data over the last few months was partly due to the holiday season.
The Fed will announce its first-quarter predictions on interest rates during the meeting, something new. Liesman believes the Federal Open Market Committee will become more dovish this year due to the natural rotation of its presidents.
The four members who will be losing vote rights this year include, Richard Fisher of Dallas, Narayana Kocherlakota of Minneapolis, Charles Plosser of Philadelphia, and Charles Evans of Chicago. Notably, Evans is the only one of these officials who has not been hawkish in the past.
Two of the members will be replaced by two dovish members, John Williams of the San Francisco Fed and Cleveland's Sandra Pianalto. Dennis Lockhart of Atlanta will also be joining the voting process, but Liesman notes he is unlikely to dissent.
The latest primary dealer survey from the Fed suggested 60 percent of Wall Street’s analysts and economists expect the Fed to increase the size of its balance sheet. Financial markets are also expecting the Fed to act.
Over the past couple of months many sectors have been showing strong signs of growth. The retail group is definitely an exception. Many economists feel the positive data over the last few months was partly due to the holiday season.
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