Fed's George says U.S. economy does not require interest rate cuts

The U.S. Federal Reserve should not cut interest rates further and easing policy as insurance against economic headwinds risks increasing financial instability at a stage in the business cycle when policymakers have limited room for maneuver, Kansas City Fed Bank President Esther George said on Friday. “My own outlook for the economy does not call for a monetary policy response,” George said in prepared remarks to an energy conference the regional bank was co-hosting with the Dallas Fed. George has voted to keep rates unchanged on both occasions along with Boston Fed President Eric Rosengren and has also pushed back on the idea that interest rate cuts may be desirable to boost inflation, which has repeatedly undershot the Fed’s 2% target.