Fed’s George: Policy “not aimed” at equity markets, though it will be felt there – CNBC
2022.05.19 16:11
FILE PHOTO: Kansas City Federal Reserve Bank President Esther George addresses the National Association for Business Economics in Denver, Colorado, U.S. October 6, 2019. REUTERS/Ann Saphir
WASHINGTON (Reuters) – The Federal Reserve is not targeting equity markets in its battle against inflation but that is “one of the avenues” where the impact of tighter monetary policy will be felt, Kansas City Fed president Esther George said Thursday in comments to CNBC.
“What we are looking for is the transmission of our policy through markets understanding that tightening should be expected,” George said a day after weak profits from major retailers contributed to a sell-off of stocks. “It is not aimed at the equity markets in particular but it is one of the avenues through which tighter financial conditions would emerge.”
