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Fed's George: We are forecasting in a bit of a fog

Kansas City Fed President Esther George said on Friday they are forecasting in a bit of fog, as reported by Reuters.

Additional takeaways

"The cost of being wrong is high; need to look at various possible scenarios."

"Policy choice to use MBS purchases is not around the allocation of credit."

"MBS and treasuries have been part of the mix of Fed's purchases for a long time."

"Would not want to pivot on mix of asset purchases."

Market reaction

The US Dollar Index clings to daily gains following these comments and was last seen rising 0.3% on the day at 93.36.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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