Kansas City Fed president Esther George is speaking at the New York economic club and her prepared remarks say:
- possibility for yield curve inversion should factor into Fed balance sheet discussion
- Fed holdings should decline significantly allowing longer term rates to rise along with its increases in the short term policy rate
- inversion has implications for financial stability; less concerned about its value as a predictor of recession
- policy rate could be increased in a steady, deliberate manner as Fed monitors impact on the economy, inflation and demand
- Ukraine war, pandemic, could further disrupt global supply, but also have implications for demand
The initial comments do not address 25 basis points or 50 basis points at the next meeting although she seems not to be in a hurry to put the pedal to the metal citing a "steady, deliberate" rate move.
George is a voting member on the FOMC board in 2022.