New Voting Members Rotated Into Federal Reserve Committee
This particular committee is made up of the board of governors, which holds seven seats, and five presidents of regional Fed banks. Four out of those five general banks rotate every year. The fifth regional bank, New York, has a permanent seat on the voting committee. Currently, there are also two vacancies in the board of governors.
The presidents of regional banks in Cleveland, Philadelphia, Dallas and Minneapolis will rotate into the committee at the beginning of 2020. It is expected that this upcoming rotation will allow for easier consensus in coming meetings when the question of whether to change or maintain the current interest rate is brought up.
“There’s going to be less room for discord now that the Fed has gotten to where it is at,” said Tim Duy, an economics professor at the University of Oregon.
At the last meeting, interest rates were left at its current level, between 1.5% and 1.75%. However, prior to that, it had been cut three times. Although consensus had eventually been reached to make each of those cuts, more divisive perspectives were expressed compared to years prior.