October 6, 2017 / 6:26 PM / 13 days ago

Fed's Kaplan says inflation pressures likely building

Dallas Federal Reserve Bank President Robert Kaplan gestures during a news conference after of the True Economic Talks event in Mexico City, Mexico, July 14, 2017. REUTERS/Edgard Garrido

AUSTIN, Texas (Reuters) - Dallas Federal Reserve Bank President Robert Kaplan said on Friday that he’d like to see more evidence of progress on inflation before raising interest rates again, and expressed some confidence that’s what he’ll see.

“As we continue to take slack out of the labor market you would think that inflation pressures with a lag are building, and I think they likely are,” Kaplan told reporters at the close of a Fed conference on workforce development.

“I would like to see more evidence of progress in reaching our inflation objective,” he said, reiterating his concern that globalization and technology are keeping inflation muted, despite unemployment that sank in September to 4.2 percent.

He repeated his view that he remained open-minded about a possible December rate hike. “I‘m going to watch a little bit here. We have the benefit of having a little time and I plan to take it.”

Reporting by Ann Saphir; Editing by Susan Thomas

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