Kaplan Backs Fed Caution on Rate Hikes Amid Complex Economic Crosscurrents

Goldman Sachs Group Inc.'s Robert Kaplan has expressed support for the Federal Reserve's cautious approach to interest rate hikes. In an interview on Bloomberg Television, Kaplan stated that he believes the Fed made 'absolutely' the right call by not raising rates in July.

Kaplan cited a complex mix of inflationary and disinflationary 'crosscurrents' as the reason for his stance. He warned against rigid forward guidance, suggesting that policymakers should remain open-minded until at least September.

'If I see meaningful improvement, I might be willing to kick the can and do nothing,' Kaplan said. However, he emphasized the need to wait and observe the economic landscape before making any judgments on interest rates.