HAWKS & DOVES: Meet The 12 People Who Will Control America's Monetary Policy In 2013

Charles Evans Federal Reserve ChicagoCharles Evans, right, president of the Federal Reserve Bank of Chicago.

Photo: AP

As Chairman of the Federal Reserve, Ben Bernanke does not have absolute power over the direction of U.S. monetary policy.  Rather, he must develop a consensus from amongst the differing viewpoints of the 12 members of the Federal Open Market Committee (FOMC).And with each passing year, the FOMC gets an injection of fresh blood.

The Federal Reserve district presidents for Richmond, Atlanta, Cleveland, and San Francisco are no longer voting members of the FOMC. They’ve been replaced by the presidents of the St. Louis, Kansas City, Boston, and Chicago.

The Financialist, a digital magazine sponsored by Credit Suisse, has a great set of profiles on each of the voting members.

“Our review suggests the FOMC will remain decidedly dovish in 2013,” they conclude.

NOTE: Thanks to The Financialist for letting us feature their profiles.

Charles Evans

Title: President of the Federal Reserve Bank of Chicago

Stance: Dove

'At the beginning of 2012, Evans urged the Fed to maintain interest rates at or near zero until either unemployment fell to 6.5 per cent or inflation hit 2.5 per cent. The FOMC's hawks put a stop to Evans' idea, fearing that increased liquidity would saddle the economy with crippling inflation. However, at its last meeting of the year, the FOMC voted to frame its third easing program around the specific targets Evans has been advocating.'

Source: The Financialist

James Bullard

Eric Rosengren

Esther George

Title: President of the Federal Reserve Bank of Kansas City

Stance: Hawk

'Relatively little is known about Esther George, who took over as the head of the Kansas City Federal Reserve little more than a year ago. What we do know is that, along with fellow Missourian James Bullard, she's a strong inflation hawk. She's also been known to do away with central banker verbiage in favour of a clearer manner of speaking. This summer in some impromptu remarks to a group of Kansas City business executives, for example, she asked, 'Is there anyone not borrowing today or purchasing a house because interest rates aren't low enough?' '

Source: The Financialist

William Dudley

Title: President of the Federal Reserve Bank of New York

Stance: Dove

'As the president of the New York Federal Reserve Bank, Dudley is a permanent member of the policy-making Federal Open Market Committee. A close ally of Chairman Ben Bernanke, Dudley has been unhappy with the strength of the recovery and has backed more monetary action as a way to bolster the economy.'

Source: The Financialist

Elizabeth Duke

Title: Federal Reserve Governor

Stance: Leaning Dove

'Appointed by President George W. Bush in 2008, Elizabeth Duke has staked out a position as an advocate for stronger government action to improve the U.S. housing market. A former community banker, Duke is concerned that banking regulations like Basel III and the Dodd-Frank Act could act as a drag on the U.S. economy and its fragile housing market.'

Source: The Financialist

Jerome Powell

Title: Federal Reserve Governor

Stance: Leaning Hawk

'Jerome Powell, a former investment banker, is a seasoned finance executive and often serves as the central bank's connection to Wall Street and financial markets. While his views on monetary policy aren't well known, he was chosen as a voting member when conservatives complained President Obama's first choice, MIT economist Peter Diamond, was too Keynesian. Powell replaced Diamond as Obama's nominee and proved to be a candidate conservatives in Congress could live with.'

Source: The Financialist

Sarah Bloom Raskin

Jeremy Stein

Daniel Tarullo

Title: Federal Reserve Governor

Stance: Dove

'Tarullo is a confirmed dove and a strong advocate for more easing as a way to get the economy back on track. He has also made a name for himself at the Fed as an advocate for tighter bank regulations. Since joining the Fed in 2009, the former Clinton administration official has overseen the implementation of the Dodd-Frank Act. More recently, in a high profile challenge, he called on Congress to cap the size of the nation's largest financial services firms.'

Source: The Financialist

Janet Yellen

Ben Bernanke

Title: Chairman of the Federal Reserve

Stance: Dove

'Over the past year, Chairman Bernanke was never fully content with the economy's performance. Even when the economy showed some strength, Bernanke wasn't ready to abandon the idea of a third easing program, often pointing to a still-weak housing sector and high unemployment rate. The chairman was likely a prime mover behind the FOMC's support for a bold monetary stimulus program that now totals $85 billion in monthly asset purchases. Bernanke, who was appointed by President Bush, has repeatedly expanded the central bank's balance sheet in an attempt to jumpstart a U.S. economy that has not yet fully recovered from the Great Recession.'

Source: The Financialist

You can be certain that the FOMC member will keep an eye on the global risks

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