Fed’s George: The path of policy cannot be on a pre-set course at this stage of the expansion

Below are some key takeaways from the prepared speech delivered by Kansas Fed President Esther George at the Economic Forum in Tulsa, Oklahoma.

• By nearly every measure, the U.S. economy is performing well.
• Reasonable to expect economic growth slightly above trend with low and stable inflation for the next few years.
• Job gains continue to rise faster than is needed to absorb workers entering the labor force.
• I expect domestic demand to remain strong.
• The path of policy cannot be on a pre-set course at this stage of the expansion.  
• Gradual normalization of policy seems appropriate to me given  that the FOMC’s employment and inflation objectives have largely been achieved.
• Looking ahead, there is good reason to expect continued moderate growth, with a gradual slowing to more sustainable growth rates of both output and employment.  
• This outlook will likely require further gradual increases in the FOMC’s target interest rate, although the pace and extent of future actions remain a key aspect of the Committee’s deliberations.