Federal Reserve Bank of Kansas City President Esther George
- says in current circumstances, concern about low inflation seems unnecessary
- says muted inflation would not warrant policy response unless downside risks materialize
- would be realistic to accept fluctuations by as much as 100 bps around fed's 2% target
- if data points to broadly weaker economy, adjusting policy 'may be appropriate'
- risks to outlook include trade policy uncertainty, weaker global growth
- says leaving US rates unchanged would have been appropriate; cites moderate growth, record-low unemployment, benign inflation outlook
- global trends important factor in keeping US inflation muted
- sees ongoing trade dispute as disinflationary for US
- says price trends in health care, college tuition are also reducing US inflation
Thre will be more to come from Geroge in the question and answer session following her speech.
Right now, little movement in the forex on the summary headlines above (those via Reuters).
