Fed's George says growth to moderate, policy appropriate

FILE PHOTO: Kansas City Federal Reserve Bank President Esther George addresses the National Association for Business Economics in Denver, Colorado, U.S. October 6, 2019. REUTERS/Ann Saphir

(Reuters) - Kansas City Federal Reserve Bank President Esther George said Tuesday she was encouraged and surprised by the strength of the third-quarter bounceback from the coronavirus downturn, but said she expects growth to moderate, and believes Fed monetary policy is where it should be.

“The calibration right now is appropriate,” George said of the Fed’s near-zero interest rates and current pace of bond buys. The key risk to growth, she said in a virtual event put on by Monmouth University, is the coronavirus, which has put women and people of color out of work at higher rates than others, and continues to weigh on some sectors more than others.

Reporting by Ann Saphir