Kaplan Counsels Patience With Growth Seen Slowing
Federal Reserve Bank of Dallas President Robert Kaplan said that he’ll be counseling patience as the central bank moves into 2019 against a backdrop of slowing growth and no sign that inflation is taking off.
“I’ve had a lot of confidence that we should be moving along” but “at this stage, you’re going to hear me be a lot more cautious and counsel patience,” Kaplan said in an interview Thursday on CNBC. “Normalizing monetary policy was always going to be challenging, and I think we’re in the stage of this process where you’re going to hear me shorten up on prognostications.”
“We ought to be very gradual and patient here, inflation — in my judgment — isn’t running away from us,” Kaplan said when asked if markets were overpricing a coming rate increase at the Dec. 18-19 meeting of the Federal Open Market Committee. Federal funds futures pricing indicates a hike is nearly 70% priced in, though that’s been headed lower in recent days.
Kaplan said he wouldn’t comment on market pricing and was “not going to judge or pre-predict what we’re going to do” but reiterated that “we ought to be patient.”