Study Guides: Federal Reserve Edition

Courtesty of the economists at Merrill Lynch:

And here's how to read it:

Understanding the Guide
Voters are above the double-headed arrow and non-voters are below. Governors and the New York Fed President are in larger font and bolded to denote that they vote each year. The first two lines below the arrow are those presidents who will rotate onto the FOMC next year (2009). The italicized names at the bottom will
not vote until 2010. "Hawks" are closer to the left of the chart while "doves" are closer to the right. "Neutral" members, who should be thought of as likely to support the Chairman, are in the center with vertical lines separating them from the others.

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The value of a guide is evidenced by the recent addition of Elizabeth Duke to the Board of Governors. With her addition, Bernanke retains a voting block of six: himself, the four other Governors - Duke, Kohn, Kroszner, and Warsh, and full-time voter New York Fed President Geithner. The addition of Duke makes it less likely that Bernanke will have to compromise with the more hawkish Presidents as it should allow him more freedom in making policy decisions. We believe this addition further increases the probability of easier monetary policy in early 2009.

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