Fed’s Kaplan: Negative Interest Rates Are Off The Table

“If there’s more for the Fed to do, it would be with treasury to help companies,” Dallas Federal Reserve President Robert Kaplan said on Tuesday, as reported by Reuters.

“Potential GDP growth after 2023 will return to being sluggish.”
“Financial conditions are relatively loose.”
“Once we have weathered the pandemic, will have conversations about tapering programs.”
“It’s not appropriate for the Fed to be involved in making choices between industries.”
“Negative interest rates are off the table for the Fed.”
“We need to get through the next couple of quarters.”
“Fiscal stimulus is going to run out; would not surprise me to see some extension sooner than later.”
“Lack of new fiscal stimulus will hurt the economy, weaken spending.”
“Next two quarters are going to be very difficult.”
“Still hopeful that in spring, with the vaccine, will see a better economy.”
“Downside risks growing with virus resurgence but we are optimistic in longer run.”