Hawks and Doves
A Hawk is originally a term in economics that refers to economists or Central Bankers who prioritize guarding against potential recession caused by higher inflation rather than focusing on economic growth. However, it is now more commonly used to describe a stance on interest rates, where a hawk advocates for higher interest rates or their increase.
The rationale behind this perspective lies in the impact of higher interest rates on borrowing, making it less attractive for individuals and corporations to borrow. Consequently, this leads to reduced spending, decreased demand, and ultimately contributes to price stability.
On the other hand, a Dove, initially used to depict Central Bankers or economists who prioritize stimulating economic growth over concerns about higher inflation rates. The term has evolved in common usage to describe a stance on interest rates. A dove typically advocates for lower interest rates or their reduction.
The underlying rationale is that lower interest rates foster borrowing among both individuals and corporations, subsequently promoting increased spending and higher demand.
FOMC Hawk and Dove Sheet
Steve Miley
Co-Founder of TradeDay.
Steve is the former head of Technical Analaysis research at Merrill Lynch and Credit Suisse, and owner of the award winning research boutique Market Chartist.




