Fed's George: Some of froth in housing market starting to back off

Kansas City Fed President Esther George said on Wednesday that she expects the US economy to continue to grow at a healthy clip, as reported by Reuters.

Additional takeaways

"Services sector is not quite back to where it needs to be, will take a combination of things for that to ease up."

"Demographics are going to affect labor force participation and need to adjust based on retirements."

Firms have more pricing power than they did two years ago or five years ago."

"FOMC was intentional in adopting an average inflation targeting framework that was not mechanical."

"Over the past decade, the public hasn't worried much about inflation and that's good."

"Household balance sheets are healthy on the aggregate though some people are struggling."

"Some of the froth in housing market is starting to back off."

Market reaction

The greenback continues to have a difficult time finding demand after these comments. As of writing, the US Dollar Index was up 0.25% on the day at 92.84.