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9/26, 5:31 AM (Source: TeleTrader)
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Fed's Kaplan wouldn't cut rates further at this point

The economy of the United States is looking to grow 2% this year, which is solid, but with 1.7% on an annualized scale in the second half amid a slowdown, according to Robert Kaplan. The president of the Federal Reserve Bank of Dallas said at a Dallas Business Club's gathering that the current policy is "on the margins, accommodative," and that he is "comfortable" with the existing level of interest rates.

He talked down the risk of recession in the next 12 months, highlighting the strength of consumption, but warned the risks "are meaningfully higher" over a two-year horizon. "The Fed has limited ammunition and the prospects for fiscal policy don't look that promising to me right now given the amount of government debt," Kaplan stated and added he would prefer to use the central bank's "when it matters, to preempt a severe downturn."

The rate-setter said the global economy is decelerating and that manufacturing is the weak spot but that the US can sail through the storm. The country needs a disorderly Brexit "like a hole in the head," and so does the US, Kaplan asserted.

Breaking the News / IT