This is the Kator Dilly podcast for Monday, January 8th, 2018.

I'm Caleb Brown.

The personnel setting policy at the Federal Reserve Open Market Committee will undergo changes this year.

This, just as the Federal Reserve has pledged to finally begin

unwinding its balance sheet in the wake of the financial crisis.

What will the new FOMC look like?

And in a sane world, should personnel really matter when setting monetary policy?

Tate Lacey, policy analyst at the Cato Institute offers his thoughts.

We spoke last month.

You and I recently discussed some of the big changes ahead at the Federal Reserve and we

didn't get into precisely the policy setting group at the Federal Reserve and how that will be changing in 2018.

Yeah, that's right. The FOMC, which is the rate setting committee, when you hear in the press reporting that the Federal Reserve

has raised, lowered, or maintained interest rates.

That is set by the Federal Open Markets Committee.

And what they do is, they are comprised of the governors

who are based here in Washington, D.C.

and a rotating panel of regional bank presidents.

And four of those regional bank presidents change every year.

The New York Fed president is a permanent member of the vice chair of the FOMC.

And we have two rotating members coming in that we know quite a lot about, but there are two that

we know very little about the two most

recently appointed Regional Bank presidents will both be voters next year. They

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