Former President of Dallas Fed Calls for Pause to Rate Hikes FOMC

Richard Fisher, the former president of the Dallas Federal Reserve. Fisher has raised concerns over the current banking crisis and has called for a pause to rate hikes.

Dallas Fed President Robert Kaplan has suggested that the Federal Reserve should take a ‘hawkish pause’ and refrain from raising interest rates for a few reasons. Speaking in an interview, Kaplan stated that the banking situation in the United States is in the early stages of a potential credit crisis, and that small and mid-sized banks, which provide most of the lending to small and mid-sized businesses, may be at risk.

The Dallas Fed President went on to recommend a ‘hawkish pause,’ which would signal that the Fed is in a tightening stance, without actually raising interest rates. Kaplan believes that this would be a prudent approach given the potential risks in the banking sector.

Kaplan’s comments come just days before the Federal Reserve is scheduled to announce its decision on interest rates. While the market has priced in a rate hike, Kaplan’s remarks may give the Fed pause for thought.