Fed’s Kaplan Says Start Tapering Process ‘As Soon as Possible’

The transcript discusses the Federal Reserve's approach to tapering asset purchases and the potential impact on the Fed funds rate. It emphasizes the importance of separating decisions on asset purchases from rate decisions. The timeline for assessing economic conditions extends into the next year, with a focus on starting the asset purchase adjustment process soon. A gradual approach over eight months is suggested to provide more flexibility for future rate decisions.

What is the main focus of the speaker regarding the Fed funds rate?

• To eliminate it entirely

• To decrease it gradually

• To separate its decision from asset purchases

• To increase it immediately

What is the speaker's view on the timeline for assessing the economy?

• It should be assessed every week

• It should be assessed over several months into next year

• It should be postponed indefinitely

• It should be done within a month

When does the speaker suggest starting the asset purchase adjustment process?

• Once the Fed funds rate is increased

• Immediately

• After the economy stabilizes

• In a year

How long does the speaker propose the asset purchase adjustment process should take?

• 4 months

• 12 months

• 6 months

• 8 months

What potential benefit does the speaker see in starting the asset purchase adjustment process?

• It will increase the Fed funds rate automatically

• It will eliminate the need for future adjustments

• It will provide more flexibility for future Fed funds rate decisions

• It will reduce inflation immediately