Dallas Fed Pres Kaplan in BBG TV interview not...>

US: Dallas Fed Pres Kaplan in BBG TV interview not exactly toeing the official

line disassociating bill purchases from being deemed QE (i.e. Chair Powell once

saying "This is not QE. In no sense is this QE"):

- "On the one hand it's not QE because we're not buying along the long end of

the curve...on the other hand I have my own view, it's having some effect on

risk assets...it's a derivative of QE and when we buy bills and we inject more

liquidity, it affects all risk assets, and I'm of that view. So for me, this is

why I say, growth in the balance sheet is not free, there's a cost to it. And we

ought to be very disciplined about it and sensitive to it. Think we need to come

up with a plan and communicate a plan for winding this down and tempering

balance sheet growth, and I'm very hopeful that we will do that."

- Kaplan speaks to the Economic Club of New York at 1200ET, with Q&A.