Fed’s Kaplan wants to reduce easing at ‘earliest opportunity’

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco
FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco, U.S., October 11, 2019. REUTERS/Ann Saphir/File Photo

April 16, 2021

(Reuters) – Dallas Federal Reserve Bank President Robert Kaplan reiterated Friday his view that the U.S. central bank should reduce its support for the economy at the “earliest opportunity,” once the pandemic is mostly over and as the economy gains steam.

“I don’t want to get in the mode of being reactive, and so reactive that we wind up being late,” Kaplan told the Texas A&M Bitcoin Conference. “We’ve got to balance the side effects of what we are doing – one is inflation, but also excesses and balances in the financial markets.”

(Reporting by Ann Saphir)