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There’s nothing new about disagreement at the Federal Reserve – Axios

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Dissent has been growing at the Fed this year and has only increased since Chairman Jerome Powell decided to cut U.S. overnight interest rates in July.

Why it matters: While there are signs the Fed’s rate setting committee is a very divided body, the 6 dissenting votes against official FOMC decisions this year are hardly out of the ordinary.

Between the lines: Kansas City Fed President Esther George and Boston Fed President Eric Rosengren, who both dissented at the September meeting, have a history of opposing the committee.

  • Since joining the Fed in October 2011, George has dissented 12 times (every time in favor of rate hikes) — far more than any other member of the FOMC during that time.
  • Rosengren has dissented 4 times since joining the Fed in 2007, and 3 have come since 2013.

The intrigue: The only Fed chair to never face a dissent was Thomas McCabe, who served in the role for 3 years following World War II.

  • McCabe helped craft the Treasury-Fed Accord, which removed the obligation that the Fed monetize the debt of the U.S. Treasury at a fixed rate.
  • This accord “laid the foundations for the monetary policy the Fed pursues today,” according to a Fed biography of McCabe.

What to watch: Members of the Fed will be out in full force this week.

  • Monday: New York Fed President John Williams (voter) and San Francisco Fed President Mary Daly (non-voter) will speak today, as will St. Louis Fed President James Bullard (voter), who dissented in favor of a 50 basis point cut at the September meeting.
  • Wednesday: Chicago Fed President Charles Evans (voter), George (voter), and Dallas Fed President Steven Kaplan (non-voter) will speak.
  • Thursday: Kaplan, Bullard, Fed Vice Chair Richard Clarida (voter), Daly, Minneapolis Fed President Neel Kashkari (non-voter), and Richmond Fed President Thomas Barkin (non-voter) are scheduled.
  • Friday: Fed Governor Randal Quarles (voter) and Philadelphia Fed President Patrick Harker (non-voter) will be up.

Go deeper: Federal Reserve announces 2nd consecutive rate cut

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