Fed’s policymakers to be more united as Dissenters exit

FXStreet (Mumbai) - Due to the regular regular rotation of voting seats among the regional Fed bank presidents, the top policy making body at the Federal Reserve appears more united than ever in 2015 as the three dissenters exit the panel.

The three dissenters in 2014 were Philadelphia Fed President Charles Plosser, Dallas Fed President Richard Fisher and Minneapolis Fed President Narayana Kocherlakota. Mr. Kocherlakota, a renowned dove, worried that the central bank was preparing to increase rates too soon. Mr. Plosser and Mr. Fisher, well known hawks, were often worried that the Fed might wait too long to raise interest rates and thereby risk falling behind the curve. Fed’s Messrs along with Plosser and Fisher, is set to retire in 2015.

Meanwhile, new voters in 2015 are Atlanta Fed President Dennis Lockhart; a centrist, San Francisco Fed President John Williams; a supporter of low rates, Chicago Fed President Charles Evans; a staunch supporter of low interest rates, and Richmond Fed President Jeffrey Lacker; who has been a skeptic of unconventional monetary policies.

Overall the policy making board appears more likely to side with Chairwoman Janet Yellen with regards to the health of the US economy and the timing of the interest rate hike. Markets forecast the first rate increase around the middle of this year.