Fed’s Kaplan: Fed policy is currently where it needs to be

Dhwani Mehta FXStreet

Following are the comments from the Dallas Federal Reserve (Fed) President Robert Kaplan delivered late-Tuesday while responding to the Q&A session from the audience and media. Note that there was no text from his speech.

The US consumer is strong.

Fed policy is currently where it needs to be.

Around 23% of global debt has negative rates which are indicative of growth is slowing and central banks being active. It's not healthy.

There is a danger central banks trying to do too much, citing the ECB's.

Since ECB has been trying to do extraordinary things; Europe might be better served if the ECB tried to do less.

On the risk of recession in 2020 he says I still think it's unlikely.

Meanwhile, the comments added to the bullish momentum seen in the US dollar index, as it kissed the 98 handle in the US last session, four-day tops. The broad USD rally was mainly bolstered by a big beat on the US ISM Services PMI report.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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