Fed’s Switcheroos At FOMC & QT

Is this year’s rotation of voting members on the FOMC likely to shift the monetary policy needle? Which way? Today, Eric identifies the new hawks and doves and speculates about how they might vote at January’s meeting. … Also: Although the Fed has been easing monetary policy, its quantitative tightening continues. Yet bank reserves remain elevated notwithstanding the Fed’s balance-sheet runoff. QT may not be terminated until bank reserves fall enough to increase short-term interest rates or until higher long-term bond yields put undue pressure on the economy.