FRANKFURT (Reuters) - The Federal Reserve should gradually reduce its accommodation as an overly tight labor market raises the risk of “excesses” building up in the economy, Dallas Fed President Robert S Kaplan said in Frankfurt on Wednesday.
“If you have significant enough overshoot of full employment, history shows that usually other excesses and imbalances build,” Kaplan, a non-voting member of the Fed’s policy committee, told an event.
“It’d be wise for us to be removing accommodation, although in a patient and gradual manner.”
Reporting By Francesco Canepa; Editing by Balazs Koranyi
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