On December 30, as the Federal Reserve enters a critical stage in its journey to fight inflation and signals that it may adjust interest rates in a more gradual manner in the future, the Federal Open Market Committee (FOMC) will welcome a new group of voting members in 2025, which may make monetary policy formulation more hawkish.

As per convention, at each FOMC meeting, a total of 19 senior officials participated in the discussion, but only 12 had voting rights, including 7 members of the Federal Reserve Board of Governors, the Chairman of the Federal Reserve Bank of New York, and 4 rotating voting members among the 11 regional Federal Reserve Bank chairmen.

According to official Fed information, in 2025, current voting members including Thomas Barkin, Chairman of the Federal Reserve Bank of Richmond, Raphael Bostic, Chairman of the Federal Reserve Bank of Atlanta, Mary Daly, Chairman of the Federal Reserve Bank of San Francisco, and Beth Hammack, Chairman of the Federal Reserve Bank of Cleveland, will end their voting qualifications.

The addition of new voting members may have an impact on policy direction.In 2025, new voting members include Susan Collins, Chairman of the Federal Reserve Bank of Boston, Austan Goolsbee, Chairman of the Federal Reserve Bank of Chicago, Chairman of the Federal Reserve Bank of St. Louis, and Chairman of the Federal Reserve Bank of Kansas City, Jeffrey Schmid.

These new members have diverse backgrounds: Collins and Goolsbee have made significant achievements in academic economics, and Goolsbee also served as chairman of the Council of Economic Advisers during the Obama administration.Goolsbee is known for his relatively dovish stance, advocating interest rate cuts this fall and highlighting the achievements of slowing inflation over the past two years.Musalem has extensive experience in the investment field and has worked for companies such as Tudor Investments and Evince Asset Management.Schmid focuses on banking issues and was CEO and chairman of Mutual of Omaha Bank before joining the Federal Reserve Bank of Kansas City.

In addition, Patrick Harker, chairman of the Federal Reserve Bank of Philadelphia, is expected to retire in June 2025, and the Federal Reserve Bank of Philadelphia is currently looking for a successor.The Federal Reserve Bank of Philadelphia will rotate to enter the voting seat of the FOMC in 2026.

According to the FOMC's latest quarterly economic forecast summary, the cumulative interest rate cut is expected to be 0.5 percentage points in 2025, but four anonymous officials expect an even less.

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