Fed's George tells WSJ that bond roll-off may be causing market volatility

Elaborating on a speech she delivered on Monday, Kansas City Fed President Esther George said the central bank's shrinking portfolio of bonds may be a "fair explanation" for what's driving stock-market volatility. "This idea that it was like paint drying, I didn't really embrace that," she told The Wall Street Journal in an interview. "You have to continually watch it." That said, George told the newspaper the Fed hasn't reached the conclusion it was necessary to change the pace of the bond roll-off. George reiterated to the newspaper that she now advocates for some patience before the Fed raises interest rates further.

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