Esther George Urges Americans to Brace for Higher Fed Rates as Inflation Stays Stubborn
Updated
Updated · Fortune · Jun 29
Esther George Urges Americans to Brace for Higher Fed Rates as Inflation Stays Stubborn
3 articles · Updated · Fortune · Jun 29
Summary
Esther George said Americans making long-horizon financial decisions should prepare for borrowing costs to rise, not fall, under the Federal Reserve’s next phase.
George, a former Kansas City Fed president, said she would not cut rates now because inflation remains a persistent U.S. problem and could force serious discussion of hikes.
Her warning cuts against President Trump’s long-running push for rate cuts and raises the prospect of friction if new Fed chair Kevin Warsh ultimately backs tighter policy.
Warsh is due to speak Wednesday at an ECB event in Portugal, while Thursday’s U.S. June payrolls report could shape expectations for whether the Fed holds or turns more hawkish.