Central bank has luxury to wait on rates given muted inflation: Fed’s Kaplan

FILE PHOTO:  Dallas Federal Reserve Bank President Kaplan speaks in Dallas
FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks with an attendee at an annual energy conference at the Dallas Fed headquarters in Dallas, Texas, U.S. September 7, 2018. REUTERS/Ann Saphir

January 15, 2019

PLANO, Tex (Reuters) – With risks multiplying and inflation tame the U.S. Federal Reserve has the luxury to wait before raising interest rates again, and should take advantage of it, Dallas Federal Reserve bank president Robert Kaplan said on Tuesday.

“The fiscal stimulus is going to wane. The Fed has raised rates nine times…When you put it all together – trade tensions, government shutdown – my feeling is that we would be wise…to wait,” said Kaplan, the latest Fed official to join a developing consensus to leave rates on hold until a varied set of economic risks resolves itself.

(Reporting by Howard Schneider; Editing by Chizu Nomiyama)

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