The Federal Reserve will welcome a rotation of regional presidents, with both the new and old teams showing a hawkish stance

Next year, the Federal Reserve will welcome the annual rotation of four regional Fed presidents. Among the 12 regional Fed presidents, five have voting rights each year—four of which rotate annually, while the New York Fed has permanent voting rights. In 2026, the presidents of the Cleveland, Dallas, Philadelphia, and Minneapolis Feds will become voting members, while the presidents of the Kansas City, Chicago, Boston, and St. Louis Feds will rotate out. Currently, all four regional Fed presidents with voting rights lean towards a hawkish stance.

Boston Fed President Collins stated this week that, although she supported the rate cut at the last meeting, the threshold for further cuts is "relatively high," and maintaining rates at current levels for "some time" may be appropriate. St. Louis Fed President Bullard expressed support for the last meeting's rate cut last week but emphasized that subsequent actions "must be approached cautiously, as there is limited room for further easing without making monetary policy excessively loose." Kansas City Fed President George reiterated last Friday that inflation "remains too high," and although tariffs may push prices up, he voted against the rate cut at the September meeting. Chicago Fed President Goolsbee previously stated that the threshold for another rate cut has been raised and expressed concerns about inflation remaining above the 2% target for nearly five years and deviating from the intended path.

The regional Fed presidents who will gain voting rights next year also exhibit a hawkish inclination. Although the inclusion of the Philadelphia Fed president may moderate the committee's stance, Minneapolis Fed President Kashkari is cautious about further rate cuts, emphasizing the economy's inherent resilience. Cleveland Fed President Mester and Dallas Fed President Logan both clearly stated that they are more focused on inflation issues and are cautious about rate cuts.