Tuesday, September 18, 2012

FOMC Policy Bias 2012 & 2013

This chart is useful for guessing the policy bias of members on the FOMC. It includes not only the members in 2012. It also includes the four new members that will rotate onto the Committee in January 2013. The Chairman (Bernanke) does not get to select who the new members are in each annual rotation because they are predetermined. His primary variable for strategy is the timing of the monetary policy matter he wants to present for vote. Obviously, the policy hawks are outnumbered and therefore not able to impact a vote in either 2012 or 2013 as well as they can impact a discussion.
The following graphic is from the Financial Times Alphaville blog.