K.C. Fed Chief: Recovery Calls for Adjustments

Economic recovery has been slow and still faces threats, but the key to reaching a balanced and sustained recovery may be making “difficult, but necessary, adjustments,” according to Federal Reserve Bank of Kansas City president and chief executive officer Esther George.

Calling the current situation “challenging and uncertain,” George said “monetary policymakers find themselves in uncharted waters” and must “weigh the potential costs and benefits of future actions.”

Current economic performance reflects “the problems that led to the financial crisis,” George told the Central Exchange, according to prepared text released by the Fed.

The “crisis did not suddenly materialize,” she noted. “Its roots grew over time, in seemingly benign spurts, as consumers, financial institutions and much of the economy took on unsustainable amounts of debt.”

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