The Federal Reserve's 2024 voting committee tends to be hawkish, but the prospect of interest rate cuts remains unchanged

According to Jin10's report, the annual rotation of Federal Reserve voting members means that the voting members in 2024 are more inclined towards hawks compared to the departing voting members in 2023, but this will not change the prospect of interest rate cuts next year.

Analysts believe that if inflation continues to decline faster than expected, Federal Reserve policymakers will hope for a larger interest rate cut, even exceeding the 75 basis points implied by the latest dot plot. In the second half of this year, the dominant force within FOMC has become more dovish as evidence suggests that price pressures are easing and labor markets are cooling off after tightening. In short, inflation data will have a crucial impact on interest rate decisions. Despite slightly hawkish leaning among voting members in 2024, given easing inflationary pressures and conditions in labor markets, the dominant force behind Fed policy tends towards dovishness and may take further measures to cut rates.