Definition of Dovish

What does it mean to be "dovish"? What does it mean to have a "dovish tone"? What does it mean if the Fed is said to have a "dovish outlook"?

A "dove" is somebody who believes that low interest rates are necessary in order to promote growth in the economy. A dove is not particularly worried that low interest rates may cause inflation down the road.

If a Fed official is said to have a "dovish stance", then this means that they are in favor of maintaining low interest rates in an effort to stimulate the economy. They are not particularly worried about inflation.

The opposite of a dove is a "hawk".

Hawks are very worried about inflation and will usually advocate higher interest rates in an effort to head off said inflation.

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