Federal Reserve may have to take the three cuts in rates of interest back which it had engineered in the previous years if the trends which hold the growth down ease said Esther George, the president of Fed in Kansas City this Tuesday.
George further said that they will be needing to assess if the cut in the rates in the year 2019 prove to be the insurance cuts which are going to be needed for being reversed in case there is a fade in the headwinds.
The Federal Reserve had trimmed their benchmark rates of federal funds for ranging from 1.5% till 1.75% in the three quarter-point moves which took place during the fall and summer of last year.
In the remarks she made, George has said that there might not be any need for the Federal Reserve to reverse their course in case the research is able to show the new benchmark levels are closer to the rates of equilibrium than the assumptions.
Most officials of Federal reserve believe that the benchmark rate is relatively accommodative and will bolster growth.
The Fed president of Kansas City said that there might be a need for cutting the rates even more in case the economy stumbles.
George said that it could mean that the downside risks and there is a persistence in uncertainties in the way that keeps the spending related to investment weak and spilling over to the customers which would alter the outlook and create a need for more easing through policies.
She said that keeping the rates on hold was the right strategy as of now as they were assessing the response of the economy to the rate cuts which happened last year.