Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday that the US Federal Reserve’s monetary policy is one reason for rising asset values and added that he is worried about excess risk-taking, as reported by Reuters.
“Number one determinant of interest rates globally is prospects for future growth.”
“A little higher rate because of more optimistic growth rates might be a good thing.”
“Will see higher inflation readings than we are used to; will settle down to 2.25% by year-end.”
“Jury is out on inflation outlook, watching inflation very carefully.”
The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.32% on the day at 91.27.