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Fed’s Kaplan Sees Spillovers as Most Significant Brexit Fallout

  • Dallas Fed head says Britain’s vote creates uncertainty
  • Kaplan says Brexit to reduce GDP growth ‘on balance’
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Federal Reserve Bank of Dallas President Robert Kaplan said Britain’s vote to exit the European Union could slow growth and the most significant question raised by the decision lies in potential spillover effects as other countries ponder their own place in Europe.

“Is there contagion? What does Ireland do? What does Scotland do? What do other EU countries do?” Kaplan told Bloomberg in an interview Thursday in Washington. “In this case, political and economic are intersecting. And it will take a significant amount of time to see how all that unfolds.”