Kansas City Fed President Esther George said, “I expect that further rate increases could put the federal funds rate in the neighborhood of 2% by August, a significant pace of change in policy settings”. Then, “evidence that inflation is clearly decelerating will inform judgments about further tightening.”
“The inflation we are now experiencing is obviously both too high and too broad to dismiss. The central bank’s job is to prevent persistent imbalances from feeding into inflation and unmooring inflation expectations,” she said. “By influencing interest rates, the Federal Reserve primarily affects the demand side of the imbalance. The evolution of its efforts alongside other factors will affect the course of monetary policy, requiring continuous and careful monitoring.”
