Dallas Federal Reserve President Kaplan says we is waiting to see how trade tension between the US and Mexico and the US and China accelerate before deciding on a rate cut
- “I want to take a little bit more time and be patient here, because some of these recent events could be reversed”
- “worth being cognizant of the fact that these recent tensions have just elevated in the last five, six weeks”
- “And in the next five, six weeks, a number of them could be alleviated.”
Hope springs eternal ….
Kaplan interview with WSJ. So, Kaplan sounds like he is leaning towards cutting, looking for reasons maybe not to, but otherwise …. Kaplan not a voter on the FOMC this year, but he has a seat at the table and each President shares her or his views on policy direction.
Most recent moves are from President Trump to impose 5% tariffs on Mexican imports
- wants Mexico to curb migration into the U.S
- If no action on this Trump will hike tariffs in steps to 25% by Octoner 1