Investors should not get too comfortable in the belief that Federal Reserve interest rate hikes are a long way off, said Esther George, hawkish president of the Kansas City Fed, which hosts the central bank's annual monetary summit in Jackson Hole, Wyoming.
"There's a lot of complacency right now, and if you look at the market path for interest rates relative, for example, to … the FOMC's projections, you will see that those have been far apart," George said in a "Squawk Box" interview aired Thursday, a day before Fed Chair Janet Yellen addresses the conference.
The minutes from the Fed's July meeting, released Wednesday, showed that policymakers discussed raising rates sooner, but they continue to disagree on how much the U.S. labor market is improving.
"I think the economy is already showing signs [of improvement]," George told CNBC. "I don't want us to be behind the curve in beginning to normalize interest rates."