Kaplan: Tapering fine only once recovery starts
Tapering the United States Federal Reserve’s bond-buying will only be appropriate once the economy starts recovering, Dallas Fed President Robert Kaplan told the Wall Street Journal in an interview published on Friday.
“These purchases, if they go on for longer than they need to, I worry that they have some distorting impact on price discovery, that they encourage excessive risk-taking, and excessive risk-taking can create excesses and imbalances that can be difficult to deal with in the future,” Kaplan explained.
Earlier this week, the Fed announced it would continue to purchase at least $120 billion in bonds each month until its monetary policy goals are achieved,
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