Fed's Kaplan Says He's ‘Concerned’ a Rate Cut May Fuel Imbalances
- Says easing policy could add to economic and market imbalances
- Kaplan says downside risks to economic outlook increased
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Federal Reserve Bank of Dallas President Robert Kaplan on Monday sounded a note of caution about cutting interest rates.
“I am concerned that adding monetary stimulus, at this juncture, would contribute to a build-up of excesses and imbalances in the economy which may ultimately prove to be difficult and painful to manage,” Kaplan wrote in an essay released by the Dallas Fed.