If FOMC voting members of 2011 are members in 2010

Reading several Fed members speeches one is stumped by the diverse views. Now in a committee all this is welcome but could get chaotic as well.

Fed has this unique structure where you have 12 FoMC members –

  • 7 Fed board members (permanent)
  • 1 NY Fed (permanent)
  • 4 regional Fed (rotating or alternate members)

I was just checking FOMC members list for 2010 and subsequent years. I was excited to see how in 2010 it is just a coincidence that you have more doves on the list:

2010      
Ben S. Bernanke  Board of Governors  Chairman; Dove; in favor of QE2 Permanent
Elizabeth A. Duke  Board of Governors Dove; in favor of QE2 Permanent
Daniel K. Tarullo  Board of Governors Dove; in favor of QE2 Permanent
Kevin M. Warsh  Board of Governors Hawk: sceptical how Fed can help Permanent
Janet L. Yellen  Board of Governors  Dove; in favor of QE2 Permanent
Sarah Bloom Raskin  Board of Governors Don’t know her view Permanent
William C. Dudley  New York Vice Chairman; Dove favor of QE2 Alternate member but Permanent seat
James Bullard  St. Louis Dove; in favor of QE2 Alternate
Thomas M. Hoenig  Kansas City Hawk: wants Fed to raise rates Alternate
Sandra Pianalto  Cleveland Dove; in favor of Fed acting Alternate
Eric S. Rosengren  Boston Dove; in favor of Fed acting Alternate
Likely verdict on further easing   7-3 (in favor of doves)  

There are still 6 Fed Board members as of now as Peter Diamond has still not been confirmed.

If it could have happened that 2011 members are in 2010, it could have been an interesting situation. Could have been a stalemate and Bernanke might have found it diffcult to summarise the debate.

2011      
Ben S. Bernanke  Board of Governors  Chairman; Dove; in favor of QE2 Permanent
Elizabeth A. Duke  Board of Governors Dove; in favor of QE2 Permanent
Daniel K. Tarullo  Board of Governors Dove; in favor of QE2 Permanent
Kevin M. Warsh  Board of Governors Hawk: sceptical how Fed can help Permanent
Janet L. Yellen  Board of Governors  Dove; in favor of QE2 Permanent
Sarah Bloom Raskin  Board of Governors Don’t know her view Permanent
Peter Diamond (likely to be nominated)  Board of Governors Don’t know his views though has shown support for easy policies Permanent
William C. Dudley New York Vice Chairman; Dove favor of QE2 Alternate member but Permanent seat
Charles Evans Chicago Dove; in favor of Price level targeting Alternate
Charles Plosser Philadelphia Hawk: sceptical how Fed can help Alternate
Richard Fisher Dallas Hawk: sceptical how Fed can help Alternate
Narayana Kocherlakota  Minneapolis Hawk: sceptical how Fed can help Alternate
Likely verdict on further easing   5-5 (stalemate)  

So in 2011, if US economy continues to be sluggish there is likely to be a stalemate in Fed. Even if Diamond is nominated and he has favored easing policies, it would be a 6-5.

Interesting times for Bernanke and Fed and US economy….

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One Response to “If FOMC voting members of 2011 are members in 2010”

  1. No one dissents at in Jan-2011 FOMC ? « Mostly Economics Says:

    […] had analysed in Nov 2011 that who would be FOMC members in 2011. It looked as  there will be more dissents with Richard […]

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