Fed's Kaplan says it will take time to see how much U.S. economy is slowing

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Fed's Kaplan says it will take time to see how much U.S. economy is slowing
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The U.S. economy is slowing and it could take a few months to figure out by how ...

SAN ANTONIO, Texas - The U.S. economy is slowing and it could take a few months to figure out by how much, supporting the Federal Reserve’s rate-hike holiday at least through June, Dallas Federal Reserve Bank President Robert Kaplan said on Thursday.

Those plans need to be drafted in a way that will keep bond-buying as a viable tool should it be needed during the next downturn, Kaplan said, nodding to potential political push-back. Asked if the balance sheet has capacity today to respond to the next downturn, Kaplan said “the answer needs to be yes.”

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