Fed's Esther George expects rates to remain high until 2024.

By The Exchange Team

As her 40-year central banking career ends, Kansas City Fed President Esther George advises her colleagues to fight runaway inflation.

George said Thursday that the Fed should boost its benchmark borrowing rate above 5% until prices stabilise.

She told CNBC's Steve Liesman that "holding that until we receive confirmation that inflation is genuinely coming down" is the message.

“I'll stay beyond 5% until we get the indication that inflation is actually convincingly starting to go back toward our 2% goal.”

The Federal Open Market Committee raised the fed funds rate to 4.25%-4.5% at the December Fed meeting.

According to meeting minutes posted on Wednesday, members saw little chance of any rate decreases in 2023.

They also expressed fear that the public would misinterpret the pause in rate hikes.