Powell Had No Choice But to Speak Out, George Says

• Esther George believes Chair Powell's recent actions were necessary to defend the Federal Reserve's independence from political influence.
• She suggests it's time for the Fed to pause rate cuts to allow previous adjustments to feed through the economy and reassess the economic landscape.
• George expresses caution regarding inflation, anticipating more price pressures in the first half of the year due to tariffs and easy financial conditions.
• She notes a disconnect in the labor market, with demand from employers easing due to uncertainty and technological investments, despite a low unemployment rate.

Former Kansas City Fed President Esther George supports Chair Powell's assertive stance in defending Fed independence. She advocates for the Fed to pause rate cuts to assess economic conditions, expressing concern about elevated inflation, the full impact of tariffs, and mixed signals in the labor market.