Bloomberg Talks Former Kansas City Fed President Esther George Talks Federal Reserve
Nov 6, 2025
Esther George, the former President of the Federal Reserve Bank of Kansas City, shares her insights with Bloomberg hosts Jonathan Ferro and Lisa Abramowicz. They discuss the current lack of consensus within the Federal Reserve and the challenges posed by mixed labor market signals. George highlights how rising federal debt complicates monetary policy decisions and could lead to increased inflation. She also considers potential future rate paths, indicating that uncertainty will likely persist as policymakers navigate these complex issues.
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Cross-Currents Complicate Fed Decisions
- The Fed faces conflicting signals from a changing labor market and easy financial conditions.
- Esther George says these cross-currents make it hard for the FOMC to form a clear policy path.
Fed's Shifting Narrative On Labor
- The committee has struggled to decide where to place weight between labor market and other signals.
- George notes the Fed shifted to prioritizing labor in September but now faces uncertainty about that narrative.
Debt Levels Will Squeeze Monetary Policy
- The Fed won't lower rates to help the federal debt position because that's not its mandate.
- George warns rising debt and deficits will nonetheless intersect with monetary policy and raise future pressures.