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Fed key rate closer to 'neutral,' should be patient on inflation: Kaplan
August 11, 2017 / 3:07 PM / 3 months ago

Fed key rate closer to 'neutral,' should be patient on inflation: Kaplan

ARLINGTON, TX (Reuters) - The Federal Reserve’s key interest rate is getting close to a “neutral” level so the Fed should patiently wait for further evidence that inflation will rise before tightening policy again, Dallas Fed President Rob Kaplan said on Friday.

FILE PHOTO: The corner stone of the New York Federal Reserve Bank is seen surrounded by financial institutions in New York City, New York, U.S., March 25, 2015. REUTERS/Brendan McDermid/File Photo

“I want to now see more evidence that we are making progress in reaching our inflation objective,” he told a University of Texas at Arlington audience, saying the so-called neutral rate is likely closer to 2 percent than to 3 percent. The Fed has raised its key rate to a range of 1 to 1.25 percent.

Reporting by Lisa Maria Garza; Editing by Bernadette Baum

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