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MNI: Fed Needs To Eliminate Imbalances, Slow Inflation -George

(MNI) WASHINGTON

Kansas City Fed president Esther George says global uncertainties, high domestic savings rate and rising unemployment will cloud the outlook.

The Federal Reserve faces an "extremely tight labor market" and needs to bring supply and demand into balance to lower inflation this year, Kansas City Fed president Esther George said Friday.

However, uncertainties including a global slowdown, how quickly U.S. consumers spend down their excess savings and rising unemployment as higher interest rates take their toll will factor into policymakers' deliberations on how much more tightening is necessary, she added.

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The Federal Reserve faces an "extremely tight labor market" and needs to bring supply and demand into balance to lower inflation this year, Kansas City Fed president Esther George said Friday.

However, uncertainties including a global slowdown, how quickly U.S. consumers spend down their excess savings and rising unemployment as higher interest rates take their toll will factor into policymakers' deliberations on how much more tightening is necessary, she added.

Keep reading...Show less