Fed’s Kaplan Supports Smooth Tapering Soon

President of the Federal Reserve Bank of Dallas, Robert Kaplan, hopes tapering could begin soon, telling Bloomberg on Wednesday that the reducing asset purchases will be smooth and not shock the market.

“I want it to get out into the market, and I think this debate we’re having at the FOMC, some of it publicly, is good.”

“People are on notice that these adjustments are coming, the only question is when.”

“These purchases are very adept at stimulating demand, but we’ve got plenty of demand.”

“Our problem is supply, and these purchases are not very effective when you’ve got a supply issue.”

Kaplan believes the Fed has learned the lesson and will not cause another taper tantrum as was the case in 2013.