Fed’s George Calls for Reducing QE Citing Higher Risk Taking

Federal Reserve Bank of Kansas City President Esther George, who has dissented against record stimulus at every policy meeting this year, urged the Fed to reduce its $85 billion in monthly bond buying as growth quickens and low interest rates prompt investors to take on more risk.

“In light of improving economic conditions, I support slowing the pace of asset purchases as an appropriate next step for monetary policy,” George, 55, said today in the text of a speech in Santa Fe, New Mexico. She was unable to speak because of illness. “Waiting too long to acknowledge the economy’s progress and prepare markets for more-normal policy settings carries no less risk than tightening too soon,” she said.