Fed's George: Speed at which interest rates should rise an open question

Kansas City Pres. Esther George on the wires saying:

• speed at which interest rates should rise an open question
• moving too fast risks over steering
• communicating the path for rates is far more consequential than the speed of policy change
• recession projections suggest to me that rapid rate hikes risk tightening faster than the economy and markets and can adjust
• abrupt changes in rates could create strains in the economy
• transmission of policy to economy will be lagged and subject to considerable uncertainty
• uncertain as to how high rates will need to rise
• pace of rate increases need to be carefully balanced against the state of the economy and financial markets
• steady path of rate increases could improve market functioning and assist balance sheet one off
• GDP still 2.5% below pre-pandemic trend suggests pandemic data long-lasting damage to the supply-side, particularly service sector
• nature of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term suggest tight economy rather than specific supply disruptions are driving prices
• raising short-term rates faster than long-term rates adjust could inverted yield curve Yield Curve A yield curve is a line used to help determine interest rates of interest rates for a specific bond, differentiated by contract lengths. This is useful for contrasting maturity dates, for example 1 month, 1 year, etc.In particular, yield curves help underscore the relationship between interest rates or borrowing costs and the time to maturity.Some of the best examples of this include US Treasury Securities, which are among some of the most observed worldwide by traders. By determining the slope A yield curve is a line used to help determine interest rates of interest rates for a specific bond, differentiated by contract lengths. This is useful for contrasting maturity dates, for example 1 month, 1 year, etc.In particular, yield curves help underscore the relationship between interest rates or borrowing costs and the time to maturity.Some of the best examples of this include US Treasury Securities, which are among some of the most observed worldwide by traders. By determining the slope Read this Term and stress banks

George dissented at the last Fed meeting preferring to raise rates by 50 basis points vs. the 75 basis points enacted.