What does dovish vs hawkish mean?

Whitley

New member
I keep hearing dovish vs hawkish in news reports. Can someone explain both terms clearly and how they affect stock and bond prices?
 
These words declare how the Federal Reserve control over the monetary policy is. Dovish is when one wants to avoid the higher interest rates, which may affect the economy and job creation, but prefers low interest rates. On the other hand, being Hawkish is characterized by an orientation of increasing rate to contain inflation to the disadvantage of economic growth. These positions are followed by investors who want to know how the market will shift or interest rates will react in future.
 
Dovish vs. hawkish describe attitudes toward policy, especially monetary policy.
  • Dovish: favors lower interest rates, easy money, and prioritizing growth and jobs—even if inflation rises.
  • Hawkish: favors higher rates, tight money, and fighting inflation—even if it slows the economy.
 
Dovish and hawkish describe central bank policy stances. Dovish means favoring lower interest rates to support growth and jobs. Hawkish means preferring higher rates to control inflation, even if it slows economic activity. Investors watch signals to predict market moves.
 
Back
Top