Fed's George says "it is time" to start cutting its bond-buying program

Esther George
Source: U. S. Geovernment
Esther George

The Federal Reserve should start cutting its massive bond-buying program sooner rather than later, says Esther George, the hawkish president of the Kansas City Federal Reserve Bank.

"The open-ended program has raised questions for me about its costs relative to its benefits," she told Fox Business Network, in her first public interview since taking the helm at the regional bank in October 2011.

Citing gains in the labor market outlook and the Fed's large balance sheet, she said, "I think it is time to begin to adjust those purchases."

George has dissented at every meeting of the Fed's policy-setting panel this year, saying she is concerned about continued aggressive monetary policy when the economy is growing.

The Fed is buying $85 billion in Treasurys and housing-backed securities to push down long-term borrowing costs and boost investment and hiring. George wants the Fed to cut back on the program soon because of concerns that it could fuel economic imbalances.