MNI BRIEF: 75BP Hike Adds To Policy Uncertainty - Fed's George

Kansas City Fed President Esther George dissented against this week's FOMC decision to hike rates by 3/4 of a percentage point because she worried about adding to policy uncertainty as the Fed embarks on both rate hikes and balance sheet runoffs.

"I viewed that move as adding to policy uncertainty simultaneous with the start of balance sheet runoff," George said in a statement Friday.

"However, the speed with which we adjust the policy rate is important. Policy changes affect the economy with a lag, and significant and abrupt changes can be unsettling to households and small businesses as they make necessary adjustments. It also has implications for the yield curve and traditional bank lending models, such as those prevalent among community banks," she added.