October 2, 2017 / 6:41 PM / in 10 months

Fed's Kaplan says will need to 'look hard' at December rate hike

EL PASO, Texas, Oct 2 (Reuters) - The Federal Reserve will need to “look hard” at whether it should raise rates in December, given the lack of business pricing power and price-slashing technological innovations that are keeping inflation weak, a Fed policymaker said Monday.

Dallas Fed President Robert Kaplan said he remains “open-minded” about a December rate hike, which most of his colleagues expect and which markets are betting heavily will happen. But the Fed “can afford to be patient” on raising rates, he said, because though tight labor markets are creating inflation pressures, structural factors are creating headwinds. (Reporting by Ann Saphir; Editing by Chizu Nomiyama)

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