As we enter the new year, the Federal Reserve faces strong economic conditions and inflation still above the 2% target, with Kansas City Fed President George speaking on Thursday hinting at a reluctance to cut rates again. In a speech at the Kansas City Economic Club, George stated, "We are currently very close to achieving the dual goals of price stability and full employment," and that "as inflation approaches the target and economic growth shows sustained momentum, I believe we are nearing a critical point where the economy does not require either restriction or support, and policy should be neutral." In the current environment, "interest rates may be very close to long-term levels," George stated. He said, "I favor a gradual adjustment of policy, reacting only when the data tone changes consistently." He also noted, "The strength of the economy gives us patience."