Fed's Kaplan urges patience on rate hikes

|By:, SA News Editor

The Federal Reserve should be gradual and patient in tightening monetary policy further, Dallas Fed President Robert Kaplan, who isn't a voting member on the central bank's interest rate committee this year.

He sees a "good possibility" that the economy will look very different in H1 2019 as the tax reform-driven economic stimulus wanes.

Also the flattening yield curve indicates expectations for future growth "are sluggish," he said.

U.S. 2-year Treasury yield declines 11 basis points to 2.71%, as the 10-year Treasury yield slips 6 bps to 2.85%.

The U.S. dollar index -0.3% to 96.68.

Previously: Fed describes growth as modest to moderate, for the most part: Beige Book (Dec. 5)

ETFs: PLW, GOVT, EGF, TAPR, FTT, FIBR, USTB

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