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8/22, 1:41 PM (Source: TeleTrader)
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Fed's George says 2% US growth is still possible

Economic growth of 2% is "still possible" this year, Esther George claimed and stressed unemployment is "very low" while that wage increases are nearing the objectives of the central bank of the United States. In an interview aired on Thursday by CNBC, the head of the Federal Reserve Bank of Kansas estimated the economy is "in a very good place," sticking to the rate-setters mantra from before they opted for "a midcycle adjustment" to manage growing risks.

The hawkish policymaker, who dissented at the last meeting by refusing to back the majority in cutting the benchmark for borrowing costs for the first time since 2008, insisted the easing move "wasn't required" and explained that she has observed the possible impact on financial stability.

She reiterated risks are indeed tilted to the downside and cited the weakening in global growth and ​uncertainties from trade frictions weighing on the outlook. George vowed to keep monitoring whether the effect of the trade war with China would spill over to real economy and pointed out one can "probably see it" already in business investment. The agriculture sector in the Fed's tenth district has been suffering from low income for five years before that, she asserted and attributed tariffs on soy for "another leg down."

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