Fed's George says it's time to raise rates, CNBC reports

It was time to raise interest rates, albeit gradually, the president of the US Federal Reserve bank of Kansas City, Esther George, told CNBC.

In an interview with the broadcaster, George added that she did not favour high rates and that any policy tightening should be gradual.

American GDP growth could still hit 2% in 2016, she said, with a rate of expansion of 3% within reach in the backhalf of the year - barring unforeseen events.

Some recent wage inflation showed consumers were in a position to spend, she told CNBC.

She also expressed concerns regarding valuations in some markets and said the upcoming presidential elections should not influence the central bank's decisions.

George cast the lone dissenting vote in favour of another 25 basis interest rate hike at the Fed's last policy meeting on 26-27 July.