WASHINGTON (Reuters) – The U.S. Federal Reserve should not cut interest rates further and easing policy as insurance against economic headwinds risks increasing financial instability at a stage in the business cycle when policymakers have limited room for maneuver, Kansas City Fed Bank President Esther George said on Friday.
“My own outlook for the economy does not call for a monetary policy response,” George said in prepared remarks to an energy conference the regional bank was co-hosting with the Dallas Fed.
Weakness - Manufacturing - Business - Investment - Policy
“While weakness in manufacturing and business investment is evident, it is not clear that monetary policy is the appropriate tool to offset the risks faced by businesses in those sectors when weighted against the costs that could be associated with such action.”
The U.S. central bank lowered borrowing costs to a range of 1.75% to 2.00% at its last meeting in September. It was the second rate cut this year, following on from another one in July, as the Fed aims to sustain the U.S. economy amid headwinds from slowing global growth and trade tensions.
George - Rates - Occasions - Boston - Fed
George has voted to keep rates unchanged on both occasions along with Boston Fed President Eric Rosengren and has also pushed back on the idea that interest rate cuts may be desirable to boost inflation, which...
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