In an interview with CNBC, Kansas City Federal Reserve President Esther George said that she doesn’t see a signal of a downturn in the economy and argued that negative rates wouldn’t be right for the US right now. “I think the Fed still has a large balance sheet,” Geroge added.
Earlier in the session, George told Bloomberg that she would be happy to leave the rates unchanged and explained:
“It’s not the time for accommodation, the labour market remains strong. Businesses are still reporting issues finding workers, we are seeing higher wages.”
The market reaction to her latest comments was relatively muted and the US Dollar Index was last up 0.05% on the day at 98.30.
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