WASHINGTON (MarketWatch) – Kansas City Fed President Esther George said Wednesday that waiting for inflation to hit the central bank’s 2% target before further interest rate hikes would be a mistake. “Waiting for solid evidence that inflation will reach 2% before taking further steps to remove accommodation carries risks of overheating the economy, fostering financial instability, and perhaps putting in motion an undesirable increase in inflation,” George said in a speech to the Central Exchange in Kansas City. George, one of the more hawkish regional Fed presidents, is not a voting member of the Fed’s policy committee this year. More dovish Fed officials have suggested pausing on rate hikes until inflation picks up from low readings this summer. George said low inflation seen this year “is not a current worry.”
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