Kaplan Says July Fed Rate Decision Was ‘Absolutely’ Right, Urges Openness Ahead of September
Goldman Sachs Vice Chairman and former Dallas Federal Reserve Bank President Robert Kaplan said the Federal Reserve was “absolutely” right not to raise interest rates in July and urged policymakers to keep an open mind ahead of September. Kaplan said forces pushing inflation higher and lower are currently intertwined, meaning overly rigid forward guidance could backfire. “If I saw tangible improvement, I might be willing to wait and do nothing,” Kaplan said. “But before making a judgment, I want to make full use of every bit of time between now and September and avoid becoming too rigid or locking in a position prematurely.” (Bloomberg)
Goldman Sachs Vice Chairman and former Dallas Federal Reserve Bank President Robert Kaplan said the Federal Reserve was “absolutely” right not to raise interest rates in July and urged policymakers to keep an open mind ahead of September.
Kaplan said forces pushing inflation higher and lower are currently intertwined, meaning overly rigid forward guidance could backfire.
“If I saw tangible improvement, I might be willing to wait and do nothing,” Kaplan said. “But before making a judgment, I want to make full use of every bit of time between now and September and avoid becoming too rigid or locking in a position prematurely.”
(Bloomberg)
Kaplan said forces pushing inflation higher and lower are currently intertwined, meaning overly rigid forward guidance could backfire.
“If I saw tangible improvement, I might be willing to wait and do nothing,” Kaplan said. “But before making a judgment, I want to make full use of every bit of time between now and September and avoid becoming too rigid or locking in a position prematurely.”
(Bloomberg)