Dallas Fed President Robert Kaplan said yesterday that if the economy unfolds between now and the September meeting as he expected, “I would be in favor of announcing a plan at the September meeting and beginning tapering in October.”
“The reason I’m saying we ought to begin the tapering soon is I think these purchases are very well equipped to stimulate demand. But we don’t have a demand problem in the economy,” he told CNBC.
“My thought is I’d rather take the foot off the accelerator soon and reduce the RPMs,” he added. “What I don’t want to do is keeping running at this speed for too long and then we’re going to have to take more aggressive action down the road.”
