“This is already a historically rapid pace of rate increases that households and businesses must adapt to, and more abrupt changes in interest rates might create strains, whether in the economy or in financial markets,” said George, who dissented from the Fed’s three-quarters-point larger-than-expected rate hike in June.
“I find it remarkable that just four months following we started raising rates, there is more and more discussion regarding the risk of recession, and some forecasts point to lower interest rates as early as next year. Such projections suggest to me that “a rapid pace of rate hikes carries the risk of tightening policy faster than the economy and markets can adjust.”
