Dallas Federal Reserve Bank President Robert Kaplan (Robert Kaplan) Friday (30) on the United States financial market imbalance warned, said Fed early to start discussing adjustments to quantitative easing (QE) is appropriate.
Kaplan Kaplan said Friday at the Montgomery Area Chamber of Commerce (Montgomery Area Chamber of Commerce): “We are at a point where we are observing excesses and imbalances in the financial markets.”
Kaplan predicted: “The stock market remains high, credit spreads (Credit Spread) not rise instead of fall and historically strong housing market, real estate surplus problems, expected the economy will reach the Fed preset indicators of tapering the scale of bond purchases sooner.”
Kaplan stressed, “I do think it is appropriate for the Fed to start talking about adjusting its bond purchases sooner rather than later (i.e., the Fed’s quantitative easing policy of acquiring $120 billion of bonds per month).”
Kaplan had bluntly stated on the 23rd of last month that he would not rule out the possibility of raising interest rates next year because of supply problems, prices will rise sharply this year, supply problems will be solved next year, and inflation will stabilize in 2022. Kaplan said at the time, the withdrawal of easing policy first step will be to reduce asset purchases, not the median interest rate chart, but more aggressive rate hikes.
Kaplan on Friday more clearly stated: “My view is different from the previous, the Fed should start raising rates in 2022.”
Kaplan, president of the hawkish Federal Reserve Bank of Dallas, does not have the right to vote this year, but he has the right to vote on the FOMC in 2023.
Kaplan hawkish speech, prompting the main index of U.S. stocks fell, the Dow Jones extended the decline of about 250 points, temporarily reported 33810.76 points, that refers to the red turned black, the dollar index jumped more than 0.6%, temporarily reported 91.23. Gold fell 0.08% in the short term, temporarily reported $1,767.90 per ounce, the ten-year U.S. bond yield fell by more than 1 basis point.