Not everyone thinks The Federal Reserve should wait till 2024 to raise rates. Dallas Federal Reserve President Robert Kaplan told CNBC on Tuesday he likely will favor an interest rate increase before the end of 2022. (CNBC)
Kaplan admitted he was one of the 2022 “dots” revealed after last week’s Federal Open Market Committee meeting that pointed to an increase next year. The Fed each quarter releases a dot plot of individual members’ expectations of where rates will be heading over the next three years and beyond.
Kaplan did make it clear that his advocacy wasn’t without caveats. He will need to see evidence of substantial growth, not just forecasts, before he will feel comfortable actually raising rates.
“As we do, and as we make substantial further progress in meeting our dual mandate goals, I for one am going to be an advocate of beginning the process of moving some of these extraordinary monetary measures and doing it sooner rather than later,” he said. “But I need to see outcomes, not just a strong forecast.”
