Recent volatility complicates picture, Fed´s George says
Recent volatility in global financial markets “complicates the picture” but it´s “too soon to say it fundamentally changes the picture” a top Fed official believes.
“The normalization process needs to begin and the economy is performing in a way that I think it's prepared to take that," said Esther George, the president of the Federal Reserve bank of Kansas City.
In an interview with CNBC the rate-settter emphasised how monetary policy had in fact been targeting asset prices for a long time.
“When you affect those kinds of prices for a long period of time, I expect we´re going to see that kind of volatility. And so the question is to what degree, and how are we positioned to deal with that?”
Disinflationary pressures would likely continue for some time but they are likely transitory, George added.