By Michael S. Derby 

Federal Reserve Bank of Kansas City President Esther George said Wednesday she's prepared to be flexible, but she doesn't yet see the case for a cut in interest rates later this month.

"When I look at the current settings for monetary policy, my own outlook suggests we will continue to see growth in the economy around or slightly above the trend rate of growth, we see an unemployment rate at a 50-year low and continued job gains as recently as the most recent employment numbers," with positive wage growth for workers, Ms. George said in a speech in Kansas City, Mo.

"Across all of these parameters, inflation has remained low and stable," the official added. "So for me that suggests we are in a good range in terms of thinking about monetary policy," Ms. George said.

The policy maker did acknowledge that risks to the outlook have risen, mostly from slowing global growth and trade policy. But currently it isn't clear whether any of those risks are actually slowing the economy. Ms. George also noted that while business investment has weakened, that has happened before in this expansion without derailing the expansion.

"To this point I think the data's come in pretty positively" in support of the expansion moving forward, Ms. George said.

The veteran central banker, who is also a member of the rate-setting Federal Open Market Committee, spoke as the July 30-31 policy meeting approaches. Fed officials are broadly expected to lower its benchmark rate from the current targeted range of 2.25% to 2.50%. They are expected to act to counter inflation pressures that remain well short of their 2% target, and to ensure rising uncertainty doesn't derail continued growth.

Financial markets are fully on board with a Fed rate cut.

Ms. George said she is prepared to adjust her monetary-policy outlook "should we realize some of these downside risks." But her speech indicated that these risks are as of now unrealized, obviating the need for a monetary policy response.

Write to Michael S. Derby at michael.derby@wsj.com

(END) Dow Jones Newswires

July 17, 2019 15:56 ET (19:56 GMT)