Monetary policy makers in the US are more and more divided under the Janet Yellen leadership. Will there be more pressure about December’s interest rates hike?

Another 7.7% difference

In the newest Bloomberg article we can read that FED members have more different opinions since Janet Yellen became a president. Just in last two years the difference increased by 7.7%.

It is the biggest difference in FED members pinions since time of Paul Volcker who was president of the FED back in 1979-87.

According to chief economist of Standish Mellon Asset Management – Vincent Reinhart – bigger difference between FED members will build pressure around December’s hike – the second one since the crisis. Ex-advisor of Ben Bernanke and Alan Greenspan said that “part of the Committee is getting more impatient, what should speed up next FED decisions”.

Although Yellen tries to do much to sustain consensus and compatibility of FED statements – she meets personally with every FOMC member – during every meeting she has on average one person against her decisions.

The difference is a sign of prosperity?

It doesn’t mean that differences between FED members must be a negative thing. History shows that FED was consequent just in times of crises. When the economy is good and the risk of negative changes is smaller then FED members have more different views on the policy.