REPEAT: Fed Kaplan Sees No Mkt Adjustment Spillover to Econ

Repeats Story Initially Transmitted at 10:27 GMT Feb 8/05:27 EST Feb 8

By Christian Vits

     FRANKFURT (MNI) - Dallas Federal Reserve Bank President Robert Kaplan

Thursday took a relatively relaxed stance on the recent turbulences in financial

markets.

     "At this point I don't see this market adjustment spilling over to

financial conditions -- but we are watching carefully," he said on the sidelines

of a conference in Frankfurt.

     Kaplan added that he is "more accustomed" to a normality with higher

volatility. "The period that's been more abnormal in my career has been the last

15 months," he said. "Market revaluation could even be a healthy thing."

     Still, he underlined to continue to be "very vigilant", looking at

financial conditions and possible spillover effects. "But I don't see that at

this point," he stressed.

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com