Esther George, president of the Federal Reserve Bank of Kansas City
- "Over the medium term, I see the biggest risk coming from slower growth abroad, particularly in China, the euro area, and the United Kingdom"
- US economy's fundamentals still appeared sound
- job growth would likely rebound from a weak performance in February
- "Downside risks are notable however as my outlook calls for growth to slow to trend, with moderating job gains and low inflation," she said. "In these circumstances, monetary policy can take a wait-and-see approach."
- it might be reasonable for the Fed to allow "even somewhat persistent" deviations from its 2 percent inflation target. "If they are limited to, say 50 basis points above or below the objective (they) may be acceptable, depending on broader economic conditions"
George not sounding too hawkish at all, sticking broadly to FOMC script.
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Main points from here speech summarised from Reuters. If you'd lie the full text:
The Economic Outlook, Monetary Policy and the Federal Open Market Committee's Inflation Objective
