Kansas City Fed President Esther George told Bloomberg that “50 basis points is going to be an option that we will have to consider, along with other things” at the May FOMC meeting.
“We have to be very deliberate and intentional as we remove this accommodation. I am very focused on thinking about how the balance sheet moves in conjunction with policy-rate increases,” she added.
“I think if you just look at where we are today, you might say we will have to go above neutral to bring inflation down,” George said. “But there is a long time between now and the end of the year to see how the economy unfolds.”
