George Highlights Bumpy Tightening Path

More headlines cross from Kansas City Fed President George (’22 voter). Once again, there is little to really rock the boat here, with George echoing recent rhetoric from Chair Powell as she notes that the tightening process will “be bumpy.” George reiterated the need to see inflation moving down in a convincing manner. She also noted that it may be hard for some politicians to accept the wider costs of tighter Fed policy. In terms of market matters, she noted that the Fed assumes that markets have already priced in its prescribed B/S runoff plan, although she did note that the central bank will be watching market functioning through the summer and into the fall, which she highlighted as an important period.