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Fed’s Kaplan says U.S. economy still needs central bank support: WSJ

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank's headquarters in Dallas

(Reuters) – It is not yet time for the central bank to pull back on its support of the U.S. economy, but reducing stimulus when the pandemic abates and more economic progress is made will help keep the recovery on track, Dallas Federal Reserve Bank President Robert Kaplan told the Wall Street Journal.

“When we’re in the middle of a crisis, we should be aggressively using our tools, so I agree with what we’re doing now in terms of asset purchases and stance of policy generally,” Kaplan said in an interview.

“There’s reason to be optimistic about the future,” Kaplan said, adding, “Having said that, I would also emphasize it is my view that we’re not out of the woods yet.”

(Reporting by Bhargav Acharya and Aakriti Bhalla in Bengaluru; Editing by Andrew Heavens)

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