OMAHA - Kansas City Federal Reserve Bank President Esther George Tuesday said the ongoing economic recovery in the United States may well warrant exceptionally low interest rates for an extended period, but warned that such a policy risks long-term financial and price stability.

George holds a voting position on the Fed's policymaking Federal Open Market Committee this year, a group that has vowed to keep short-term interest rates at exceptionally low levels so long as unemployment remains above the 6.5% threshold and inflation doesn't hit 2.5%.

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