George (Fed) calls for patience to see if inflation is “on the right track”.
Kansas City Fed President, Esther Georgeasked this friday “be patient” to know if US inflation is on “the right trend”.and indicated that the services sector was the main concern of the central bank regarding the persistence of inflationary pressures.
“The management is good. Inflation remains well above the Fed’s target. To be true to the price stability mandate, it looks like we’ll have to be a bit more patient to see if we’re on the right trend and… we will get closer to that 2% target more convincingly.“, he pointed out in an interview with Bloomberg.
According to him, ” the economy responds to some of the forecasts and work of the Federal Reserve. to achieve a better balance between supply and demand”, although there is still some way to go to reach the inflation target, in particular due to the effect of the service sector.
” The The pressures we see in the service sector are likely to continue.. We know that spending is holding up, that people are still traveling a lot, that’s something I would like to see progress on so that we are more confident that inflation will come down,” he added. .
George was optimistic about the Possibility of a “soft landing”. of the American economy, and considers that “there is a certain chance that this will happen”, because “there is still a lot of money in household current accounts”.