Hawkish / Dovish

A “hawkish” central banker prioritizes the fight against inflation, even if it means keeping rates high at the risk of slowing employment; a “dovish” one prioritizes employment and growth, even if it means tolerating a bit more inflation. Between the two, a neutral stance (“data dependent”) waits for the numbers to decide. These animal images, borrowed from American military vocabulary, sum up in one word the tone of an FOMC statement or a speech by its Chair — a shorthand markets use constantly to anticipate what comes next.