Fed's George: Falling jobless rate means adjusting monetary policy is of 'paramount importance'

Speaking at an economics conference in Santa Barbara, California, Kansas City Federal Reserve President Esther George (non-voter) suggested that the balance sheet should be trimmed this year.

Key quotes (via Reuters):

• Fed should start reducing investments this year in longer-term treasuries and mortgage backed securities
• Runoff of fed balance sheet should be set on 'autopilot'
• Falling jobless rate means adjusting monetary policy is of 'paramount importance'
• I support gradual interest rate increases