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21 Aug 2014
Fed's George: Considerable improvement in jobs signals rate hike near
FXStreet (Łódź) - Kansas City Fed president Esther George said today in an interview for CNBC that the steady improvement of the US labor market could prompt an earlier interest rate hike.
"When you see the economy getting as close as we are to full employment, to stable inflation, it would suggest to me that the time has come to do that," she stressed.
George argued that even though the process of economic adjustment was not finished yet, the Fed should look forward, not to lag behind the curve on interest rate normalization.
She suggested that some benchmarks have already been signaling that rates should be above zero and that markets should pay attention to economic developments in order to predict the timing of the first rate hike.
"When you see the economy getting as close as we are to full employment, to stable inflation, it would suggest to me that the time has come to do that," she stressed.
George argued that even though the process of economic adjustment was not finished yet, the Fed should look forward, not to lag behind the curve on interest rate normalization.
She suggested that some benchmarks have already been signaling that rates should be above zero and that markets should pay attention to economic developments in order to predict the timing of the first rate hike.