KC Fed president George:
- Sees ‘some hesitation’ in household, business confidence
- Fed should allow asset ‘runoff’ before raising rates
- Calls on Fed to stick to 2011 plan for exiting stimulus
The debate at the Fed is about whether to reinvest expiring bond purchases. The core of the Fed now says that bond purchases should be reinvested because it would allow them to hike rates sooner. George is the first to push back and say that’s a bad idea.
Her comments about raising rates sooner are in-line with her usual hawkish stance.
