Fed's George stresses views for near-term rate lift to normalize policy

On Thursday, Esther George, Kansas City Federal Reserve Bank President repeated views that a Fed rate lift is required, noting that she voted for an interest rate lift hike in September as the necessity to gradually normalize policy surges and could lead to interest rates getting raised too quickly later.

Her comments cap a day of policymaker views, which included Fed Chair Janet Yellen still remaining vague as for the timing of any rate hike.

At a forum for minority bankers in Kansas City Janet Yellen told that the Fed is eager to keep monitoring how US consumers are getting on. As the American economy keeps making progress, the Fed will make progress too, as the US major bank doesn’t want to get far behind and take costly actions later.   

On the Federal Open Market Committee, George has appeared to be a lone dissenting vote for most of the year, though the previous month two other regional Fed bank presidents joined her in demanding a rate hike right away while three others dropped a hint they expect no rate lifts at all this year.

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