Rate hike best sooner rather than latter, Fed´s George says

Ratesetters should avoid the risks that go with 'overheating' the US economy, a well-known Fed policy-hawk said, adding that she would prefer a rate hike sooner rather than later.

In remarks prepared for a speech on Oil and the Economy, the president of the Federal Reserve bank of Kansas City, Esther George, said: "Monetary policy should avoid deliberately stoking the risks that come with overheating the US economy".

In her opinion, the central bank should "slowly raise the federal funds rate".

George was one of two dissenters at the 2 November Fed policy meeting, having voted instead for an immediate 25 basis point rate hike.

As of 1624 GMT, the yield on the benchmark 10-year US Treasury note was at its session-high, rising by four basis points to 2.34%.