Dallas Fed’s Kaplan: Open minded on adjustment if see continued weakness - CNBC
|Dallas Fed’s Kaplan on CNBC is making comments, ending the interview now.
Key comments:
- Sees 2% growth in 2020.
- Sees risks a little bit more to the downside.
- Impossible’ to know how serious crisis is ‘as it starts.
- Expects solid growth so long as the consumer is strong.
- Backed the Fed's July rate cut.
- Would like to take further action on rates.
- Need a policy that fits US economy.
- Open-minded on adjustment if see continued weakness.
About Kaplan
Robert Steven Kaplan has served as the thirteenth president and CEO of the Federal Reserve Bank of Dallas since September 8, 2015. He represents the Eleventh Federal Reserve District on the Federal Open Market Committee in the formulation of U.S. monetary policy and oversees the 1,200 employees of the Dallas Fed.
FX implications:
The comments follow a series of Fed speakers following the July Fed decision to cut rates who have accumulatively given off a more balanced assessment of the US and global economy and advocated a wait and see approach with respect to imported recessionary risks. The big risk to the Dollar at this juncture is an upside risk, a tail risk form which the markets have priced in ahead of time which may not come to fruition which is an additional rate cut of 25 basis points at the next meeting in September.
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