Wall Street Journal (07/15/14) Michael S. Derby

Esther George, president of the Federal Reserve Bank of Kansas City, says the strengthening labor market and rising inflation mean the U.S. economy would be best served by a steady and gradual return to a more normal interest rate environment. “Waiting too long may allow certain risks to build, that if realized, could harm economic activity without room to adjust rates in response,” she says. “Getting interest rates off zero relatively soon is not only appropriate in terms of current economic conditions, but also will allow the Fed room to maneuver in the future should economic activity slow.”

George expects the unemployment rate to “near its longer-run normal level with rising inflation” by the end of 2015.