Fed is ‘a meeting or two late’ in starting the rate cutting process - Robert Kaplan

What did Robert Kaplan say?

Robert Kaplan, the president of the Federal Reserve Bank of Dallas, said on Monday that the Federal Reserve is "a meeting or two late" in starting the rate cutting process. He said that the Fed should have started cutting rates in June or July, and that the delay is "increasing the risk of a recession."

Why does Robert Kaplan believe the Fed is late?

Kaplan said that the Fed is late in cutting rates because it is "behind the curve" on inflation. He said that the Fed has been too slow to react to the recent surge in inflation, and that this has led to a loss of credibility. He also said that the Fed is too focused on the unemployment rate, and that it is ignoring the risks of inflation.

What are the implications of the Fed being late?

Kaplan said that the Fed's delay in cutting rates is increasing the risk of a recession. He said that the Fed's inaction is creating uncertainty in the markets, and that this is leading to a slowdown in economic growth. He also said that the Fed's delay is making it more difficult for businesses to invest and hire new workers.