Fed's Kaplan: Economy in 2019 may look very different

Economy 12/3/2018, 12:48 PM
Fed's Kaplan: Economy in 2019 may look very different

President of the Federal Reserve Bank of Dallas Robert Kaplan stated that the domestic economy may shape up differently by the end of the first half of next year, FT reported on Monday. According to the central banker, fiscal stimulus sometimes "maybe masking some of these other developments" that have an impact on the economy.

"We need to be attuned to the idea that the economy may look very different in the first half of 2019 or the middle of 2019 than it does today," noted Kaplan. He also stressed that the Fed needs to be "very patient" when it comes to increasing interests rate further, especially since the previous rate hikes resulted in slower inflation. "I think because inflation readings are more muted, we have the luxury to be patient and be very vigilant here, and try to avoid making that mistake," warning the central bank not to "overdo it."

The senior Fed official didn't comment on whether he plans to vote against the interest hike during the upcoming meeting.

Breaking the News / VK

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