Fed's Kaplan says Fed not in 'full fledged' rate cutting cycle

Fed's Kaplan says Fed not in 'full fledged' rate cutting cycle
FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco, U.S., October 11, 2019. REUTERS/Ann Saphir -
Ann Saphir(Reuters)
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WASHINGTON (Reuters) – The Fed is watching for signs a global trade slowdown is having broader impacts in the United States beyond manufacturing and investment, but is not yet heading into a “full-fledged rate cutting cycle,” Dallas Federal Reserve President Robert Kaplan said on Friday.

“The debate we are having around the (Federal Open Market Committee) table is, there is a risk that slowing global growth and weak business investment is going” to move beyond an immediate impact on factories and capital spending, Kaplan said. So far “the consumer is strong … I expect that to continue … But it is fragile.”

“We therefore took action in July and took action in September. I don’t view this as starting a full fledged rate cutting cycle … But it is appropriate to adjust the stance of monetary policy in a more limited, restrained way.”

(Reporting by Howard Schneider; Editing by Alison Williams)

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