Fed's George: Monetary policy set to remain highly accommodative for some time

The US Federal Reserve is positioned to be patient as it follows the outlook for the virus and the economy, Kansas City Federal Reserve Bank President Esther George said on Thursday, as reported by Reuters.

Additional takeaways

"Monetary policy is set to remain highly accommodative for some time."

"It is too early to discuss pulling back on accommodation given continue elevated unemployment, below-target inflation, and the uncertainties surrounding the outlook."

"Recent rise in longer-term interest rates does not in my view warrant a monetary policy response."

"Much of the increase in yields likely reflects growing optimism in the strength of the recovery."

"Any additional monetary stimulus could exacerbate the unevenness that has been the defining characteristic of the pandemic downturn."

"The outlook for agriculture improved in large parts of the country but risks remain."

"The unemployment rate of 6.3% likely underestimates the amount of slack in the labour market."

"The stage is set for a strong recovery once widespread vaccination is achieved."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.45% on the day at 89.78.