Kaplan says he wants Fed to avoid being ‘late’ on tapering

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 9, 2021

(Reuters) – Citing his concerns about excess risk-taking in financial markets and potential inflation, Dallas Federal Reserve Bank President Robert Kaplan said Friday he will push for reducing the Fed’s support for the economy sooner than later.

“You don’t want to be preemptive, but I also don’t want to be so reactive that we are late,” Kaplan said in a virtual appearance at the Engage Undergraduate Investment Conference. Once the pandemic is weathered, and it is clear there has been progress toward full employment and 2% inflation, he “will advocate” for pulling back on “some of the Fed’s extraordinary actions,” starting with trimming the Fed’s bond-buying program.

(Reporting by Ann Saphir)