Federal Reserve Bank of Kansas City President Esther George, who dissented last month against the central bank’s jumbo 75 basis-point increase in interest rates, cautioned that rushing to tighten policy could backfire. “Communicating the path for interest rates is likely far more consequential than the speed with which we get there,” she said Monday in a speech to the Mid-America Labor/Management Conference in Lake Ozark, Missouri. “Moving interest rates too fast raises the prospect of oversteering.” George, whose vote at the June meeting of the Federal Open Market Committee was the first dovish dissent of her career, said she understood the desire to raise rates rapidly to dampen surging inflation but was concerned it could do more harm than good.
Source: The Bond Buyer
