Fed’s George: Time for US to Raise Rates

It is time for the Federal Reserve to raise U.S. interest rates gradually given progress on employment and inflation, said Kansas City Fed President Esther George, the only U.S. central banker to dissent against the Fed’s decision last month to stand pat on policy.

“I do think it is time to move that rate. That doesn’t mean I favor high rates. It doesn’t mean I think that needs to happen rapidly. I agree (with) a gradual move in these rates,” she said in a television interview from Jackson Hole, Wyoming, where some of the world’s top central bankers are meeting this week.

“But under conditions where we’re seeing employment move in the direction that it is, where we are seeing low and stable inflation – I think it’s fair to say we can remove some of that accommodation,” George added on CNBC.

Reuters

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell