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MNI PODCAST: FedSpeak-Fiscal Boost Means More Fed Hikes-Kaplan

  • The Federal Reserve could need to hike rates as high as 6% because services inflation is likely to remain sticky -- in part because of the ongoing effects of robust U.S. fiscal policy, says former Dallas Fed President Robert Kaplan.
  • Kaplan said the Fed must be cautious as it raises rates further because it still faces the risk of further damage to financial stability.
  • "You don’t want to be in a position at the Fed where you can’t sustain rates at this level and have to turn and make cuts in order to deal with some breakage," he said.
Listen to full podcast here.
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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