Hawks and doves

They are also birds. Have you ever thought about the different characteristics of eagles and pigeons?

Hawks are aggressive, fast-moving birds, while pigeons are defensive, gentle, and strategic.

Of course, I'm not talking about the “animal world” today

Now let's get down to business

You may often hear the US Federal Reserve being compared to hawkish or dovish in some news

The hawks and doves here refer to two different directions of monetary policy.

The Federal Reserve's monetary policy aims to achieve two goals: controlling inflation and maximizing employment.

Naturally, these two goals are in conflict with each other.

Hawkish officials are more focused on fighting inflation,

As a result, they seek a tight monetary policy and tend to raise interest rates.

Therefore, for hawkish officials, quantitative easing is unacceptable.

In contrast, dovish officials are in favor of maximizing employment incentives and advocating interest rate cuts to boost economic growth.

So doves will say no to quantitative austerity.

In addition to hawks and doves, there are also neutral centrists.

Will members of different factions change their positions?

The answer is, of course, yes.

Let's take Greenspan as an example.

As the former chairman of the Federal Reserve, he was considered a staunch hawk during the great inflation of the 1980s.

But over time, he became a dovish because he supported no interest rate hikes in the late 90s.

People often think that hawks should support interest rate hikes.

However, hawkish members may also change their minds.

Therefore, don't rely too easily on every statement made publicly by Federal Reserve officials.

How can we know which members of the Federal Reserve are doves and who are hawks?

Few FOMC members directly talk openly about their faction, but some financial institutions publish relevant articles every year, analyzing each member's position.

Or you can go to Futubull to search for relevant information.