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Fed’s George Warns Raising Rates Too Fast Risks ‘Oversteering’

  • Majority of Fed officials open to 75 basis-point July increase
  • George favored smaller hike in June, her sole dovish dissent
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Fed’s George Warns Jumbo Hikes Risk ‘Oversteering’
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Federal Reserve Bank of Kansas City President Esther George, who dissented last month against the central bank’s jumbo 75 basis-point increase in interest rates, cautioned that rushing to tighten policy could backfire.

“Communicating the path for interest rates is likely far more consequential than the speed with which we get there,” she said Monday in a speech to the Mid-America Labor/Management Conference in Lake Ozark, Missouri. “Moving interest rates too fast raises the prospect of oversteering.”