Fed Watchers Uncover Hawkish-Dovish Divide Impacting Monetary Policy Decisions
The article looks at how the public perceives the policy preferences of the Federal Open Market Committee (FOMC) members. By analyzing media coverage from 1960 to 2015, it found that most FOMC members are seen as either inflation-fighting hawks or growth-promoting doves. Some members switch between these roles, while others remain unknown to markets. These perceptions align well with the members' actual actions and statements. The FOMC's composition of hawks and doves changes over time due to voting rights rotation, member turnover, and shifts in preferences.