Fed’s Kaplan says price pressures rising but no need to shift rate path

AMELIA ISLAND (Reuters) – Dallas Federal Reserve Bank President Robert Kaplan said price and wage pressures are building as tariffs on metals and more expensive oil increase costs for U.S. businesses, but there is no need so far for the Fed to shift its expected path of rate increases.

“The short run cyclical forces are strengthening,” Kaplan said, but will be offset by longer term trends that will keep prices lower and the path of the Fed’s target interest rate “flatter than we are historically accustomed.” He said his base case outlook remains for two more U.S. interest rate increases this year.

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