Fed’s Kaplan repeats call for opening QE taper debate

 Fed’s Kaplan repeats call for opening QE taper debate

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/File Photo

(Reuters) – Federal Reserve Bank of Dallas President Robert Kaplan on Thursday that as the U.S. economy improves and weathers the pandemic, the U.S. central bank should move to consider reducing its support for the economy sooner rather than later.

“Maybe taking the foot gently off the accelerator would be the wise thing to do here,” Kaplan said at a virtual event put on by the Borderplex Alliance, an economic development organization on the U.S.-Mexico border. Massive fiscal stimulus has helped boost demand, he said, and the Fed’s continued monthly $120 billion in bond purchases could contribute to excesses and imbalances in financial and housing markets, he said, adding, “I think it’s important that monetary policy adapt to…

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