The FOMC rate decision is this afternoon and I have written a number of comments on what to look for and the potential outcome for the first FOMC announcement of the year. The 2 major things to watch are a) the Fed’s assessment of the economy and b) any dissenters. If the Fed upgrades their outlook and one voter inherits Hoenig’s role as the lone dissenter, it would be dollar positive. If the decision to leave rates unchanged is unanimous, we may not see much support for the dollar.

There are four new members on the Federal Reserve Open Market Committee, so I have taken the liberty to update the 2011 FOMC Voting Member Dove Hawk Scale

Here’s where they stand:

Openly Hawkish
Philadelphia Fed President Charles Plosser

Slightly Hawkish
Minneapolis Fed President Narayana Kocherlakota
Dallas Fed President Richard Fisher
Governor Kevin Warsh

On the Fence, Leans towards Easier Policy
Chairman Ben Bernanke
Chicago Fed President Charles Evans
Governor Elizabeth Duke

Slightly Dovish
New York Fed President William Dudley
Governor Sarah Bloom Raskin (cast first vote last year to supprot easing in Nov)
Governor Daniel Tarullo

Openly Dovish
Vice Chairman Janet Yellen

Here is the FOMC Rotation for the next few years:

Source for both charts is Fixedincomelive.com