The Federal Reserve has 17 members with five permanent voting members and two potential new members that affect the policy of the Fed and what the fed ultimately decides to do. This past month those members discussed and decided to keep the interest rate at near zero. Below is an analysis of those permanent members and what direction they lean on economic policy.
Janet Yellen
Ms. Yellen, the chair of the Fed, has proven to be a bit more dovish than many initially expected regarding foreign policy. She has shown herself to be a hands-on chair, calling the other members to set a sense for what they are thinking before their meetings. Many believe she truly wishes to raise the interest rate before the year is over. She has a permanent voting status on the Fed.
Stanley Fischer
The Vice Chair Mr. Fischer has historically been pretty neutral but has been known to serve as a counterweight to Ms. Yellen. In June he stated that raising the rate would be advisable if the labor market continued to improve and inflation stayed relatively low. Mr. Fischer has a permanent vote on Fed. The Fed not raising rates in September may have been a show that Mr. Fischer has less influence over Ms. Yellen and her takes on policy.
Daniel Tarullo
A governor with permanent voting status, Mr. Tarullo is the key official on banking supervision and is often mute about his views on the economy. When he does speak out it is often to caution that the economy may have lost some steam after the first quarter, which could not be entirely blamed on problems with the seasonal adjustment of date. He was a former advisor to President Clinton and appointed to the Fed by President Obama. He often sides with the majority of decisions on monetary policy.
Jerome Powell
A governor with permanent voting status and the only Republican on the Fed board, Powell has not been as aggressive as people had previously anticipated. He is a former venture capitalist and worked at the Treasury Department for some time. He believes that a rate hike should happen but also likes to have more data available. He has also advocated for going slowly when raising the interest rate.
Lael Brainard
A former Treasury undersecretary for the Obama administration, Ms. Brainard, a governor with permanent voting status, has been fairly cautious about raising the interest rate. She has not recently stated if she believes the rate should be raised before the end of the year.
Along with the permanent members there are also a variety of other voters who cycle through votes. Understanding the Fed policy and approach is an important part of our economy, and at Cambridge Realty Capital we understand that knowledge about the markets and what affects the markets is paramount. We are experienced in dealing with a wide range of investments and deals and are dedicated to working for your best interests.
