Fed’s George Concerned About Effect of Aggressive Rate Rises on Economy

The Federal Reserve official who forged the only vote opposing the central financial institution’s supersize price rise final month continues to be frightened financial coverage tightening could also be occurring extra shortly than the economic system and monetary sector can take up.

“I’m certainly sympathetic to the view that interest rates need to increase rapidly, recognizing that current rates are out of sync with today’s economic landscape,” Federal Reserve Bank of Kansas City President Esther George stated in a speech textual content. “However, I am also mindful of how the rate of change in tightening policy can affect households, businesses, and financial markets particularly during a time of heightened uncertainty.”