Fed's Kaplan: Fed policy is one reason for rising asset values

Eren Sengezer FXStreet

Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday that the US Federal Reserve's monetary policy is one reason for rising asset values and added that he is worried about excess risk-taking, as reported by Reuters.

Additional takeaways

"Number one determinant of interest rates globally is prospects for future growth."

"A little higher rate because of more optimistic growth rates might be a good thing."

"Will see higher inflation readings than we are used to; will settle down to 2.25% by year-end."

"Jury is out on inflation outlook, watching inflation very carefully."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.32% on the day at 91.27.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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