Kansas City Fed President Esther George explained on Friday that he disagreed with a rate hike of 75 basis points because he considered that such a move increased political uncertainty simultaneously with the start of the reduction of the balance sheet, as reported by Reuters.
Featured Statements
“With high inflation and a tight economy, the case for further removal of accommodative policy is clear.”
“Inflation has shown no significant signs of slowing down.”
“The speed with which we adjust the policy rate matters; large and abrupt changes can be unsettling for households and small businesses.”
“The speed of adjustment also has implications for the yield curve and traditional bank lending models that are prevalent among community banks.”
“We share the FOMC’s strong commitment to reduce inflation to meet our long-term price stability mandate.”
market reaction
The dollar index continues to rise after these comments and was last seen up nearly 1% on the day at 104.80.
Source: Fx Street
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