Economy

Fed’s Kaplan, in interview, presses for start of discussion on tapping brakes on support for economy

Dallas Federal Reserve President Robert Kaplan on Tuesday argued again, in an interview with MarketWatch, for beginning a conversation about tapping the brakes on the Fed’s support for the economy.

Kaplan said he has greater confidence than he had three months ago that the economy is weathering the pandemic and is on track to meet the Fed’s goals of full employment and price stability.

The Fed has been buying $120 billion per month of Treasurys and mortgage-backed securities, and has kept interest rates close to zero, in an effort to support the economy.

In December, the Fed said it would continue asset purchases until the economy reached a benchmark of “sustained further improvement” in meeting its goals of full employment and 2% long-run inflation.

“A lot has changed since December,” Kaplan said, pointing to strong fiscal policy actions.

“I think it will make…

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