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MNI BRIEF: Fed's Kaplan Dismisses Need For QE Tweak

(MNI)

Dallas Fed President Rob Kaplan on Wednesday dismissed the need to change the central bank's quantitative easing program.

"As we are in the teeth of the crisis I wouldn't change it [QE] but as we get beyond the crisis and weathered it I would like to see us taper these purchases and start to wind them down," Kaplan said in a webinar with Dallas PBS affiliate KERA.

The U.S. economy will have a "rough fourth quarter" and "very challenging first quarter," Kaplan said, while "by the middle of next year" GDP growth will be above trend and reaching 3.5% for 2021. Unemployment will approach 3.5% around late 2022, he said.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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