Fed’s George Urges Higher Rates to Avert Asset-Price Bubbles
- Kansas City Fed chief has dissented in 2016 to favor rate hike
- Fed has limited ability to affect labor market, George says
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Federal Reserve Bank of Kansas City President Esther George urged the U.S. central bank to increase its target interest rate to counter possible asset-price bubbles.
“I view the current level as too low for today’s economic conditions,” George said in a speech on Thursday in Albuquerque, New Mexico, according to prepared remarks. “Interest-sensitive sectors can take on too much debt in response to low rates and grow quickly, then unwind in ways that are disruptive.”