Federal Reserve's George expects policy interest rates to reach two percent in August

Photo Credit: By Federal Reserve

Federal Reserve Bank of Kansas City President Esther George says the interest rate will rise about 2 percent by August, with further action depending on inflation and supply conditions.

According to George, Fed policymakers have articulated a commitment to act swiftly to restore price stability. He is confident that further rate increases will push the federal funds rate to around 2 percent by August, which would be a significant shift in policies. "Evidence that inflation is clearly decelerating will inform the decision about further tightening," George said at a Kansas City Fed symposium.

24 May 2022