Fed’s George urges faster drawdown of $8.5 trillion in assets and ‘more normal’ interest-rate strategy

The president of the Kansas City Federal Reserve said the central bank should move soon to reduce its enormous $8.5 trillion pile of bond holdings to help curb the highest U.S. inflation in almost 40 years.

Esther George on Tuesday said the Fed’s effort to reduce inflation would be more effective if the bank drew down its holdings of long-term bonds even as it gradually raised short-term interest rates. She made her remarks in a virtual speech to the Central…

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