Esther George, president of the Federal Reserve Bank of Kansas City, joined Yahoo Finance on the sidelines of the annual Jackson Hole symposium discuss the Fed's firefight with inflation amid recessionary concerns.

Below is a transcript of her appearance, taped on August 24 and aired on August 25.

BRIAN CHEUNG: Yahoo Finance on site here, the Jackson Hole Economic Symposium. I'm sitting down here with Kansas City Fed President Esther George. President George, how are you?

ESTHER GEORGE: I’m well, good to see you, Brian.

BRIAN CHEUNG: Great to see you too. Well, first of all, it's great to be back here in person behind the backdrop of the beautiful Tetons here, but of course, coming at a time of a lot of cloudiness, in terms of the economic outlook. Just kind of curious, the big picture question is, of course, inflation. What is your outlook on whether or not inflation will get down to where you'd like it to be by year end or next year?

ESTHER GEORGE: I don't think it will get down to where we'd like it to be by year end. But I think what we're dealing with right now, Brian, is what we've seen for a while, and that is a imbalance between demand and supply. So July looked like there was some easing in those price pressures, but certainly not enough that you would say, we're in the right direction. So I think we have more data to see. And I think we have more work to do, to begin to see that trend move down.

BRIAN CHEUNG: So when you say easing of price pressures that may have been maybe a reading on the month over month figures plateauing between June and July. But of course on a year over year basis, 8.5% higher than they were last year, what is the proper way to think about inflation data because you have a lot of people wondering what is the right way to read this, all they see is what's happening at the store, which of course is a lot worse than it was a year or two ago?

ESTHER GEORGE: Now it's true, headline inflation is very important. Because when you pull up to the gas pump, what you see is that high price of gas, so when that came off a bit, that provides some relief. But on the other hand, food prices have not yet shown that kind of downward trend when people go to the grocery store. So it's a very important factor in how people feel about the economy. There's sentiment around that and how they spend their dollar.