Fed’s George Says President Comments Don’t Alter Her Actions

President Donald Trump’s criticism isn’t influencing the way Kansas City Fed President Esther George, long one of the central bank’s most hawkish members, conducts policy.

George offered the most candid view yet of the president’s repeated comments that he’s not happy that the Fed has continued to raise interest rates since he’s taken office. In an interview with CNBC’s Steve Liesman, George said this isn’t the first time a president has worried over monetary policy.

“Expressions of angst about higher interest rates are not unique to this administration. We know higher interest rates cause adjustments in the economy,” she said during an interview from the Fed’s annual retreat in Jackson Hole, Wyoming. “Congress anticipated this kind of tension when it designed the central bank, and they put firewalls in place so that the central bank could be independent and carry forth with its decision making.”

In a CNBC interview on July 19, Trump expressed frustration with the Federal Reserve, saying the central bank’s interest rate hikes could disrupt the economic recovery.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza