Robert Kaplan, the new chief of the Dallas Federal Reserve Bank, signaled on Thursday that he views further interest-rate hikes as far from imminent, saying he wants to be “very patient” in assessing the outlook for the U.S. economy.
Since December, Kaplan told the Real Estate Council in Dallas, financial conditions in the U.S. have tightened, potentially slowing economic growth. Kaplan said he is also watching global developments, particularly the slowdown in China, and its potential impact on the United States.
Kaplan said that while the Fed wants to normalize rates because zero rates cause market distortions, he is currently in a mode of assessing the situation and wants to be “vigilant” about the risks to growth.
Kaplan won’t vote on policy until 2017, but he will take part in the Fed’s policy meetings over the year, with the next one set for mid-March.
Source: Reuters (Reporting by Ann Saphir; Editing by Chizu Nomiyama)