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Dallas Fed's Kaplan Favors Rate Hike Pause Amid Uncertainty

  • Says Fed should open minded on adjusting balance-sheet runoff
  • Kaplan says Fed’s next steps will be much more important
Bloomberg business news
Dallas Federal Reserve President Robert Kaplan explains his approach to monetary policy on Bloomberg Television.Daybreak: Americas." (Source: Bloomberg)
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Federal Reserve Bank of Dallas President Robert Kaplan said the U.S. central bank should put interest rates on hold as it waits to see how uncertainties about global growth, weakness in interest-sensitive industries and tighter financial conditions play out.

“We should not take any further action on interest rates until these issues are resolved, for better, for worse,” Kaplan told Bloomberg’s Michael McKee in a television interview on Thursday. “So I would be an advocate of taking no action and -- for example -- in the first couple of quarters this year, if you asked me my base case, my base case would be take no action at all.”