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

(MNI) WASHINGTON
  • 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.
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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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