At the upcoming May 6–7 meeting, U.S. central bankers are expected to keep short-term borrowing costs unchanged. Policymakers are waiting for more clarity on President Donald Trump’s evolving trade policy and how it might influence inflation and unemployment. In March, the Fed projected about half a percentage point in rate cuts for 2025 but emphasized the unusually high uncertainty around their forecasts. (Source: Reuters)

Agencies

Federal Reserve officials often fall into two broad categories based on their policy leanings. A “dove” tends to focus more on risks to the labor market and may favor cutting interest rates to support employment. In contrast, a “hawk” is primarily concerned with inflation and is typically more cautious about easing policy. These labels help frame how officials may respond to new economic data.

ANI

Christoph Waller emphasized patience, noting the Fed is well-positioned to wait for greater clarity before making any policy changes. Austan Goolsbee suggested that the impact of tariffs might be brief or limited, advocating a steady approach. Michael Barr warned against taking preemptive action in the current uncertain environment.

Reuters

John Williams believes the Fed can afford to be patient while staying attentive to changes. Philip Jefferson highlighted the need for careful consideration of tariff impacts before reacting. Lorie Logan emphasized monitoring tariff-related price increases to assess inflation risks.

Reuters

Lisa Cook stated that while inflation may still be transitory, rate cuts should follow only after clear labor market deterioration. Jeffrey Schmid warned that one-time price changes should not lead to assumptions of persistent inflation. Patrick Harker said the Fed will wait for stronger signals from businesses before moving.

ETMarkets.com

Raphael Bostic advised against bold policy moves at this stage, citing potential risks. Beth Hammack has not made public comments on monetary policy since May 2024 but is generally viewed as cautious.

Reuters

Jerome Powell emphasized a watch-and-wait approach, seeking more data before taking action. Michelle Bowman said the Fed is well-positioned but needs greater clarity before deciding. Alberto Musalem cautioned against assuming the effects of tariffs will be brief. Mary Daly reiterated the Fed’s central goal of restoring price stability. Thomas Barkin highlighted the importance of business feedback, noting that signals like reduced activity would help guide decisions.

AP

The Federal Open Market Committee (FOMC) consists of seven governors, including the Fed Chair and Vice Chair, who vote at every meeting. The president of the New York Fed also holds a permanent vote. The remaining twelve regional Fed presidents participate in discussions, but only four vote at any given time, rotating annually.

Reuters

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