Fed’s George: Framework is Not Promise to Raise Inflation

President of the Federal Reserve Bank of Kansas City, Esther George, said on Thursday that the Fed’s new framework, which aims for inflation above 2%, shows tolerance for higher inflation, but not a commitment to increase it.

“I interpret the revised consensus statement as a tolerance, and less as a promise to engineer,” higher inflation, George was quoted by Reuters as saying.

“It will be difficult to assess the underlying pace of inflation until the dust settles.”