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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.