Governor George, policy tightening plan unchanged even in the stock market “roughness”-Bloomberg

George, the governor of the Kansas City Fed, said it was not surprising that the stock market was in a turbulent week, but that it reflected some of the tightening of monetary policy. He said he would remain supportive of multiple 0.5-point rate hikes to curb inflation.

“What we expect is policy communication through market understanding, and such tightening should be expected,” George said in an interview with CNBC on the 19th.

Chair Powell continues to raise rates until “clear and convincing” inflation recedes (2)

“Currently, inflation is too high and we need to make a series of interest rate adjustments to lower it,” George said. “We have determined that the financial environment is starting to tighten, and we have to keep an eye on that, and it’s hard to understand how much it will be needed,” he said.

He added that “there is no sense of discomfort in the action of 0.5 points now,” and said that the US monetary authorities’ plan to reduce the balance sheet of 8.9 trillion dollars (about 1130 trillion yen) will contribute to further policy tightening. “At this point, 0.5 points is fine. To determine that more action is needed, we need to look at something very different.”

Some US monetary officials have emphasized the need to raise interest rates to a neutral level that neither accelerates nor slows the economy. On the other hand, Governor George said it was not clear where the level was, and said he wanted to be willing to look for signs that inflation would subside. “For me, more important is when inflation levels off and begins to slow,” he said. “I think it will give us a direction for monetary policy.”

Original title:Fed’s George Says ‘Rough’ Market Won’t Alter Fed Tightening Plan(抜粋)

(I will update by adding the content of the president’s remarks)

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