Bloomberg Surveillance · Wednesday, July 29, 2026
Former Kansas City Fed President Esther George expresses concern about the duration of elevated inflation, suggesting that underlying inflation has remained well above the Fed's target. She leans towards the view that action is needed and that rates have not been restrictive enough, emphasizing that the Fed Funds rate is its primary tool against inflation.
“Well, Lisa, I've been concerned for some time about the duration of elevated inflation in the economy. And yes, we've had a number of one offs as we call them, coming hitting the economy, But the truth is, underlying inflation has remained well above the Fed's target, and so my own sense is the cuts last year really eased into something that was still a problem in terms of inflation. So I would continue and am continue to be concerned about elevated inflation.”
“So my leaning is to say inflation remains a problem. The one instrument the FED has to attack that is Reelly. It's Fed funds rate.”