Economics
Fed’s George Favors ‘Steady, Deliberate’ Series of Rate Hikes
- How aggressively to move rates is uncertain, Fed official says
- Yield curve inversion could have financial impact, George says
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Federal Reserve Bank of Kansas City President Esther George said that policy makers should raise interest rates in the face of surging inflation, though the pace of hikes may need to be deliberate to monitor economic developments during the tightening.
Recognizing risks to the outlook “is not an argument for stalling the removal of accommodation, but it does suggest a steady, deliberate approach for the path of policy could provide space to monitor developments as they unfold,” George said Wednesday in prepared remarks to the Economic Club of New York. “It is clear that removing accommodation is required. How much and how aggressively accommodation should be removed is far more uncertain.”