Dallas Fed President Robert Kaplan said interests are now “about where they should be”. And Fed should “move off to the side and be patient.” He added that fed should neighing be raising interest or cutting interest rates for now. “We’ll have to see where we go from here, and I’ll keep updating my judgment based on what we see in the economy,” He said.
Regarding trade war escalation with China, Kaplan said “what we don’t know right now is how long these issues will persist, how far will they go, will these tariffs, that have just been put on, and counter tariffs, will they be with us for months, weeks, or longer.”
But he admitted that trade situation creates uncertainty, “creates uncertainty for businesses, it creates uncertainty generally — and uncertainty by and large”. And he warned ” if it goes on for an extended period of time, probably is not helpful if you are a business and trying to manage your business … it has some chilling effect on business.”
