What Do "Doves" and "Hawks" Mean in the Federal Reserve? How Do They Affect the US Dollar and Gold?

"Doves" and "Hawks" are two major factions within the United States. Those who advocate resolving conflicts through force are called "Hawks," while those who favor peaceful solutions are referred to as "Doves."

"Hawks" represent an emotional America, one that glorifies military action. As long as the U.S. holds a dominant position, the Hawks will maintain leadership in domestic and foreign policy. Only when the use of force brings significant international and domestic pressure—or risks backfiring—do the Hawks temporarily step back. "Doves," on the other hand, embody a rational America, advocating for peaceful evolution. From the perspective of U.S. national interests, the Doves only step in to "mediate" when the wealth seized by the Hawks causes trouble. During capitalist economic crises, the Doves retreat behind the scenes.

After 9/11, the Hawks gained dominance in the U.S. This faction primarily consists of traditional hardliners in the Republican Party, right-wing forces in Congress, industrial and military magnates, self-interested leaders in defense and intelligence agencies, conservative think tanks dating back to the Cold War, and media outlets with extremist leanings. In their view, America's true adversaries are regional powers that could challenge U.S. dominance in the future.

A Hawk-dominated America and a Dove-influenced America together form a complete United States. When it comes to national interests, there is no life-or-death struggle between the two—both serve America’s global strategy.

A stronger Hawkish stance tends to strengthen the US dollar (USD) and weaken gold prices, while a sustained Dovish stance typically weakens the USD and benefits gold.