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Central Banks

Fed’s George Says Higher US Savings May Also Mean Higher Rates Needed

Esther George

Esther George

Photographer: David Paul Morris/Bloomberg

Kansas City Federal Reserve Bank President Esther George said ample US savings will help to buffer households but could also mean higher interest rates are needed to cool spending. 

George told a panel Tuesday in Santiago hosted by the Central Bank of Chile that if savings are concentrated in wealthier households who tend to spend a smaller share of their wealth, it might not provide much of an additional boost to spending.