Dallas Fed’s Kaplan ‘actively considering’ backing December rate rise: FT

Reporting by Ismail Shakil

Dallas Federal Reserve President Robert Kaplan is “actively considering” supporting another increase in short-term interest rates at the central bank’s meeting in December, the Financial Times reported on Tuesday.

“History has shown that normally when we have a substantial overshoot the Fed ultimately needs to take actions to play catch-up,” Kaplan said in an interview with the Financial Times.

Kaplan said he was actively considering “appropriate next steps” when asked if he was willing to consider a rate rise at the upcoming Fed meeting, FT reported.

Kaplan said he was concerned that historically low unemployment rates, which hit a 17-year low in November, required heightened vigilance, according to the paper.