Fed's Kaplan says central bank needs to be conscious of financial stability risks

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank's headquarters in Dallas, Texas, U.S. January 9, 2020. REUTERS/ Ann Saphir

NEW YORK (Reuters) - The Federal Reserve needs to keep an eye on how its efforts to stabilize markets and promote stronger jobs growth could be encouraging some investors to take on excess debt and other risk, Dallas Fed President Robert Kaplan said Friday.

“I do think we need to be conscious of financial stability and excesses that could build as a result of our policies,” Kaplan said during an interview with Bloomberg TV. “I will view that as an important consideration as we make judgments going forward.”

Reporting by Jonnelle Marte; Editing by Alex Richardson