Trade Smarter - Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
Speaker: Esther George, President and CEO of the Federal Reserve Bank of Kansas City
FOMC Voting Member: Yes
Venue: Virtual event hosted by S&P Global.
Topic: Economic outlook
Comments:
- The economic landscape is murky, no clear narrative on the outlook for growth
- Only clear data is that inflation is high. I am watching if persistently high inflation seeps into expectations
- Faster supply growth is not likely to take care of the inflation problem
- The Fed’s monetary policy needs to move into restrictive territory, but how restrictive remains to be seen as policy actions have a lag
- I expect rates will have to move higher for a sustained period, but moving too fast could disrupt financial markets
- The Fed needs to minimize policy uncertainty during the time of market volatility
- I support ongoing interest rate increases
- CPI report on Thursday is a reminder the Fed has more work to do on inflation
- My own forecast does not call for a recession
- The Fed’s terminal rate may have to be higher and stay there for longer, but I am more cautious than most about how quickly we do that
- It is important to get inflation back to the 2% goal, I have a hard time arguing in favor of a different inflation target
- I can't say with any confidence how long rates will remain high after reaching the peak
- Fed will continue on a tightening path until inflation is turning around
Fedspeak to Watch out in the Coming Days
- St. Louis Fed President James Bullard will discuss the inflation outlook on October 15, 2022
- Atlanta Fed President Raphael Bostic will take part in Workrise Panel Discussion on October 18, 2020
- Minneapolis Fed President Neel Kashkari will discuss the economy on October 18, 2022
Related: Learn How Monetary Policy Impacts Global Markets