January 9, 2014 / 7:30 PM / in 4 years

Fed's George fears Fed will wait too long to hike rates

WISCONSIN, Wisc. Jan 9 (Reuters) - The Federal Reserve’s efforts to provide markets with so-called “forward guidance” on its interest rate policy could result in the Fed keeping interest rates too low for too long, to the detriment of the economy, a top Fed official said on Thursday.

“I find that making commitments out into the future... is complicated. We can’t know today and make commitments to that point, in my view, that respect how the economy is unfolding,” Kansas City Federal Reserve Bank President Esther George told the Wisconsin Bankers Association. “We cannot wait too long to make decisions... If we become too focused on current data measures as opposed to watching the longer term trends then I fear we may wait too long to move rates.”

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