Fed’s Kaplan: Not inclined to think about a rate cut now - WSJ


In a Wall Street Journal interview, Fed's Kaplan says that he is not inclined to think about a rate cut now.

Federal Reserve Bank of Dallas President Robert Kaplan said Tuesday events are still too fluid around the coronavirus outbreak to say the U.S. central bank needs to lower short-term rates, as many in financial markets now think is likely.

“We are still in the heat of this and there’s just a lot of uncertainty, so anytime you are in the middle of something where there’s a lot of uncertainty and you know that in the next three or four weeks some of that uncertainty is going to get cleared up, either for better or worse, I think...

– Wall Street Journal

Key comments

  • Feds’s Kaplan: Watching for data on coronavirus spread.
  • Feds’s Kaplan: Declines to say if next Fed rate change is up or down.
  • Unclear right now coronavirus calls for rate change.

FX implications

It was a bloodbath on Wall Street on Tuesday with US benchmarks fell in a back-to-back loss, bringing back memories of the 2018 routs. The coronavirus outbreak around the world has forced US health officials to announce that a pandemic is likely. 

 

 

 

 

 

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