Fed’s George: Three hikes this year and next would be reasonable

Kansas Fed President Esther George was out on the wires last minutes, via Reuters, commenting on the monetary policy and economic outlook.

Main Headlines:

With the US economy at or beyond full employment, the arrival of fiscal stimulus makes more rate hikes important.

Three hikes this year and next would be reasonable unless economic outlook changes.

Rising wages are a ‘welcome development’ and that it is important that gradual rate increases are continued.

Unclear how much the fiscal changes would boost the economy but that the stimulus would come as the US labor market appears to be tight, raising the risks of inflation.