Fed’s Kaplan: ‘Actively considering’ December rate rise - FT

The Financial Times (FT) reports comments from the Dallas Fed President Robert Kaplan delivered during an interview, with the key headlines found below.

‘Actively considering’ December rate rise

Points to the risks that an overheating job market will create “imbalances and excesses” in financial markets.

Tight US job market weighing on decision despite stubbornly low inflation

“History has shown that normally when we have a substantial overshoot the Fed ultimately needs to take actions to play catch-up,”

“And there is not a long history of soft landings in those events.”

“The reason for moving sooner rather than later [is] it might increase the likelihood that we are able to move patiently, gradually, and I want to avoid a situation where we get behind the curve and have to move much more rapidly.”

“If we are not meeting our inflation mandate or I don’t see a prospect of it, I am still going to be assessing the size of the overshoot in our full employment objective.”

“And that could be a justification for me to [vote to] continue to remove accommodation in the months ahead.”