While claiming he will keep an open mind, Federal Reserve Bank of Dallas President Rob Kaplan reiterated he would like to see inflation rise before the next rate hike.

“[F]uture removals of accommodation should be done in a gradual and patient manner,” Kaplan wrote in an essay released by the Fed. He said that means “I will be open to updating my views on the economic outlook and the appropriate stance of monetary policy based on incoming economic information. I will avoid being rigid or unduly predetermined in my views.”

With the federal funds rate at a range of 100 to 125 basis points, Kaplan said, “I would like to see some greater evidence that we are making progress toward meeting our 2 percent inflation objective in the medium term.”

Kaplan also said he believes “it will likely be appropriate to begin the process of balance-sheet reduction sometime later this year.”

Federal Reserve Bank of Dallas President Rob Kaplan.
Federal Reserve Bank of Dallas President Rob Kaplan. Bloomberg News

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