Will Fed’s George oppose big hike at FOMC meeting?

The rate rise the Federal Reserve is almost certain to deliver Wednesday will likely draw a formal objection by a veteran policy maker though she was once the US central bank’s most steadfast hawk.

Fed’s Esther George looks will likely vote against the 0.75 percentage point rate rise her colleagues on the Federal Open Market Committee seem to decide as the Fed continues on its aggressive quest to lower very high levels of inflation.

If George really opposes the move, it would mark her second “No” vote this year. She also opposed the three-quarters of a percentage point rate rise in June. Another opposition would be a notable change in disposition relative to other central bankers.

In office since 2011, she has voted against the consensus in over half of her FOMC voting stints, almost always against the easy money policy stance then favored by most other Fed officials.

George is worried rates are rising too quickly for the financial system and economy to easily deal with. The Fed has taken its federal funds target rate range from near zero levels in March to what is likely between 2.25% and 2.50%, a level last seen at the end of 2018. More rate rises loom as the year progresses.

George’s objection is unlikely to find much favour with the other officials who vote Wednesday. The policy maker is also set to retire at the start of the new year.