Kaplan Backs Fed Rate Pause, Cites Need for More Inflation Data

Goldman Sachs Vice Chairman Robert Kaplan has spoken in favor of the Federal Reserve's decision to keep interest rates at 3.50%-3.75% in July, despite continued inflation pressure and a divided vote.

Kaplan, a former president of the Federal Reserve Bank of Dallas, believes policymakers needed more time to assess inflation before acting.

In an interview with Bloomberg Television, he stated that he wants to use 'every moment' before the September meeting to determine whether inflation is improving enough to justify another pause.

Kaplan identified several forces that could prevent inflation from returning quickly to the central bank's target, including investment linked to artificial intelligence, tariffs, labor constraints, and high oil prices.