(Kitco News) – To add further confusion to Fed Speak – Kansas City Federal Reserve President Esther George, said on Thursday that it’s time to increase interest rates.
In the interview that aired on CNBC, George said any tightening should be gradual. “I do think it is time to move that rate. It doesn’t mean I favor high rates. It doesn’t mean I think it needs to happen rapidly.”
The world marketplace is awaiting the Federal Reserve’s annual symposium that starts Thursday in Jackson Hole, Wyoming. Fed Chair Janet Yellen speaks at the event on Friday. While it’s hoped she will shed new light on the timing of any future interest rate increase from the U.S. central bank, many think her speech will not yield much fresh insight. However, past Jackson Hole Fed confabs have produced markets-moving results.
According to George, the Fed has not acted yet because some recent economic data have given policymakers pause.
“But under conditions when we’re seeing employment move [higher with] low and stable inflation, I think it’s fair to say we could remove some of that accommodation,” she said.
By Kitco News;
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