Kansas City Fed president Esther George spoke to Bloomberg TV earlier
- Favours two more rate hikes this year
- Upside and downside risks to outlook appear to be offsetting
- Doesn't feel that Trump impedes the Fed's ability to make decisions
- Committee is very focused on the mandate given by Congress
- Will make decisions that are in the long-run interest of a growing economy
- More difficult debate is how far Fed will raise rates before pausing
- Estimates the neutral rate at 3% but won't say where rates should level off
She's speaking ahead of the Jackson Hole symposium which is due to begin today. But we'll only be hearing from Powell tomorrow, in a speech keenly eyed by markets for the time being. Do note that George isn't a voting member on the FOMC this year, in case you want to know how her bias fits into the Fed's decisions.
But in terms of the Fed's reaction to Trump, that is very much expected. The Fed prides itself on independence so it answers to no one - and that includes the POTUS.
Update:
- Global economy may have some contagion risk to US
- Trump is not influencing her votes on rate hikes
