Central Banks

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 Kansas City Federal Reserve President George is out on the hustings (sorry speaking) in Oklahoma City. She is talking up the Fed, inflation and rate rises. All is good, you can rely on the Fed is the message.

Fed George

On Inflation 

  • Weak inflation reading does not appear related to weak economy, with general confidence it will increase
  • Feds forecast show confidence inflation will get to 2%

On jobs

  • Expects job growth to weaken but remain at levels needed to absorb new workers and keep unemployment rate low
  • Watchful of risks from financial instabilty

On Growth

  • Seeing stronger business activity, investment
  • Stable oil prices spurring drilling, mining activity

On Balance Sheet

  • Fed Balance Sheet plan very well telegraphed up to this point
  • Balance sheet adjustment didn't cause strong market reaction
  • Supports FOMC approach to balance sheet rolloff
  • Balance sheet tool should be kept for emergencies only

On Rate Rises

  • Gradual interest rate moves appropriate, but said needs to keep rate rises underway
  • Regulatoins on smaller banks beginning to impact ability to lend and serve customers
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