Now that Washington’s circus-like government shutdown has put a damper on hopes for stronger U.S. economic growth going into next year, dovish Federal Reserve officials again appear to have the upper hand in the way of policy commentary.
It’s official: Instead of policy doves on the U.S. central bank’s Federal Open Market Committee, there are now only “non-hawks.” A research note from Thomas Lam at OSK-DMG used the term in referring to recent remarks from once more dovish officials like Charles Evans of the Chicago Fed and San Francisco Fed President John Williams.
As the Fed ponders providing another round of stimulus to a weak U.S. economy, it is difficult to keep track of the views of individual central bank officials. This newly-updated hawks-doves chart should help cut through the clutter. One good rule of thumb: keep a close eye on Ben Bernanke. The Fed Chairman is highly respected by his colleagues and his views usually carry the day.
Ben Broadbent’s appointment to the Monetary Policy Committee ought to dispel any notions that the Bank of England would be left short of hawks after the departure of Andrew Sentance.