Kansas City Federal Reserve President Esther George said on Wednesday that the time has come to dial back the settings on the monetary policy, as reported by Reuters.
“Timing of the Fed’s tapering of asset purchases is not mechanically connected to the timing of any policy rate adjustment.”
“Road ahead to policy normalization is likely to be a long and bumpy.”
“Pre-pandemic labor market may not be best guidepost for assessing maximum employment.”
“Peak boost to economic growth from fiscal policy has likely passed.”
“Temporary factors related to the pandemic are likely contributing to the current tightness in the labor market.”
“As schools reopen and enhanced unemployment benefits end, these constraints on labor supply should ease.”
“Expecting economic growth to step down but remain robust.”
“Labor market will continue to recover at a rapid pace and inflation will moderate.”
“Delta variant of the coronavirus threatens renewed restrictions or increased consumer caution and could delay the economic recovery.”
The US Dollar Index showed no immediate reaction to these remarks and was last seen gaining 0.13% on a daily basis at 92.95.
View more information: https://www.fxstreet.com/news/feds-george-time-to-dial-back-settings-on-monetary-policy-202108111610