Comments from Dallas Fed President Kaplan
- Downside risks to the US economic outlook have increased
- Concerned rate cut now could fuel imbalances
- Too early to judge if trade and global growth uncertainties will hurt US economic growth
- Interest rates 'in the neighbourhood' of neutral
- Says he will monitor US and global economies and financial conditions in the coming weeks and months
- TIght labor market exerts upward push on inflation
- Trade tensions likely contributing to softening of global growth
Sounds like Kaplan isn't eager to cut rates but he's keeping an open mind. The US dollar ticked slightly higher on the comments. He makes a pretty good case for watching and waiting but he's no a voter and I believe the core of the Fed has already decided to cut.
