Economist's Insights

Fed’s George Says Further Gradual Rate Hikes Appropriate

Sep 28, 2017

Kansas City Fed President Esther George expects positive momentum from 2Q GDP growth will return after 3Q hurricane disruptions and help extend the expansion for several more years. George highlighted a pickup in U.S. business investment and an improved global outlook as two recent bright spots. On inflation, she believes job conditions should put pressure on wages and noted that, despite meager wage growth, the pace of income gains has kept purchasing power in front of inflation; a commonly cited silver lining of slower inflation.