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Dallas Fed chief calls for interest rate 'action' when benchmarks met

'Meaningful improvement in mobility and engagement' will be barometer, Robert Kaplan says

Dallas Federal Reserve Bank President Robert Kaplan expects 6.5% growth in the U.S. economy this year.   © Reuters

WASHINGTON -- Dallas Federal Reserve Bank President Robert Kaplan says that he takes a position "different than the median" among Fed officials on interest rate hikes and that he "will be advocating that we should be taking action" once benchmarks for employment and inflation are met.

In a recent telephone interview with Nikkei, Kaplan said his decisions will not be a "calendar-based judgment" but rather an outcome-based judgment. Yet he indirectly acknowledged being one of the four Fed officials who predicted that the first post-COVID-19 rate hike would come next year in the latest Fed "dot plot" of benchmark interest rate forecasts. A majority of Fed officials predict such action to come after 2024.

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