Comments to Dow Jones
Kaplan said cuts should be limited and restrained.
He's scheduled to speak in 20 minutes but these comments were carried by Dow Jones, citing an interview. Here's the article.
"Maybe the fed-funds rate is a little bit out of kilter with market-determined rates," Mr. Kaplan said in an interview Tuesday morning. "I'm open-minded to at least arguments on that subject."
The persistence of the yield curve inversion "would make you consider at least a tactical adjustment-not a change in strategy, not the beginning of a rate-cutting cycle," he said.
This could be the start of a Fed effort to curb market pricing of an aggressive easing cycle and rather a couple insurance rate cuts, or what he's calling a 'tactical adjustment'.
