Fed's George: Households have been in 'pretty good shape'

• Households are continuing to spend
• We are hearing from people that tradeoffs to spending due to inflation are occurring
• In determining when 'enough is enough' in policy tightening the chief focus is on inflation numbers
• I'm not sure in picking a number around neutral is of much value
• "If people don't buy as many goods and they begin to move out into more-normal patterns of consumption, maybe we don't have to go as far to achieve some kind of equilibrium in the economy"
• I am very comfortable with doing 50 bps because I see that balance sheet runoff at the same time

George is emphasizing the recent Fed mantra around hiking until 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 falls.

I think the bolded comment is important and I wrote about it here.