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Fed’s Kaplan Says Market Volatility ‘May Be a Healthy Thing’

Bloomberg business news
"I’ll be watching carefully to make sure it doesn’t transmit to tighter financial conditions," Kaplan says.Source: Bloomberg

Federal Reserve Bank of Dallas President Robert Kaplan said the recent financial market upheavals may actually be beneficial and he doesn’t expect them to have a negative impact on the economy.

“More volatility in the markets, and maybe addressing some of the excesses and imbalances in the markets, by having a little more volatility, may be a healthy thing,” he said in an interview with Bloomberg Television’s Manus Cranny, adding that the preceding months of smooth sailing were “historically unusual.”