Kaplan says Fed patience should run at least ‘a quarter or two’

FILE PHOTO:  Dallas Federal Reserve Bank President Robert Kaplan poses at a luncheon in El Paso
FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan poses at a luncheon in El Paso, Texas, U.S., October 2, 2018. REUTERS/Ann Saphir

January 15, 2019

PLANO, Texas (Reuters) – The U.S. Federal Reserve should wait at least “a quarter or two” before raising rates again as officials sort through a host of fresh economic risks from the government shutdown to financial market volatility, Dallas Federal Reserve bank president Robert Kaplan said on Tuesday.

While conditions could change, “it will take a little bit of time to let this situation unfold…I think it is in the matter of months, not weeks,” Kaplan said, adding that the Fed would likely need “a quarter or two” to see how a variety of issues get resolved.

(Reporting by Howard Schneider; Editing by Chizu Nomiyama)

Source link