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8/22, 9:23 PM (Source: TeleTrader)
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Fed's Kaplan hopes to avoid further rate cuts

Federal Reserve Bank of Dallas President Robert Kaplan told CNBC in Jackson Hole on Thursday that he would like to avoid cutting interest rates further in September, but noted he would be ready to do so if necessary. He stressed that he expects US economic growth to stand at a "solid" 2% in 2019, despite the weakening of the manufacturing sector, as long as "consumers stay strong."

Kaplan pointed out he was in favor of the rate cut in July and noted he will assess the economy until the Fed's next meeting before he decides if rates should be lowered further. He voiced concerns about too many rate cuts as they could "hurt savers" but insisted the Fed should not wait too long if it sees a case for taking further action. The Dallas Fed chief claimed the inversion of the main part of the yield curve does not worry him as much as the whole curve moving downwards.

The policymaker disagreed with United States President Donald Trump that the US should cut rates and take other measures to help the economy just because other countries are doing it. Kaplan explained that the current trade uncertainty affects US less than it does other countries and that the Fed's interest rate decision should depend on American prospects for further growth.

Breaking the News / NP