Kansas City Fed President Esther George said she raised her interest rate expectations to 5 percent and that rates should stay at these levels until we see a steady decline in inflation.

Shortly before the end of his 40-year career in Central Banking, George called on his colleagues to seriously fight inflation in an interview with CNBC.

“I think rates should stay above 5 percent until we see evidence of inflation falling, and stay there until we see convincing signals that it will drop to the 2 percent target,” George said.

Fed officials continued with a 50 basis point rate hike at the December meeting and increased the interest rate to the range of 4.25-4.50 percent.

Stating that it would be appropriate for the interest to stay at this level until 2024, George also stated that he does not expect a recession in the economy.

Yesterday, Minneapolis Fed President Neel Kashkari said that if the rate rises to 5.4 percent, it may rise to higher levels if inflation does not fall.

Source of information ; CNBC Economy