Fed’s Kaplan: Tapering earlier gives flexibility

Dallas Fed President Robert Kaplan told Yahoo Finance on Thursday that acting sooner on asset purchases may give us the ability to be more flexible and patient on the fed funds rate down the road.

Also read: Fed’s Kaplan: September meeting would be time to announce plan for tapering

More comments

Sees ‘resilience’ in economy to delta variant.

Fed’s asset purchases had their purpose and their time but not longer well-suited to the situation.

Housing market doesn’t need any more support from the Fed.

Difficulty hiring workers could go on for a significant period of time, could impact prices.

Doesn’t see anything likely to change his view that fed rates liftoff would be appropriate next year, though tapering earlier gives flexibility.

FX reaction

Despite being a non-voting member, the Fed policymakers’ sturdy support to the tapering keeps market players on the edge ahead of Fed Chair Jerome Powell’s key speech at the Jackson Hole Symposium tonight.

Also read: AUD/USD bears sinking their teeth in as hawks circle above