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Fed's Kaplan sees trims to balance sheet as soon as September

  • A Federal Reserve Bank president said Friday the central bank could begin to allow its balance sheet to shrink in the coming months.
  • At the same time, he reiterated his view that while the U.S. is near full employment, inflation has been muted.
Robert Kaplan, president and chief executive officer of the Federal Reserve Bank of Dallas
Elizabeth Schulze | CNBC
Robert Kaplan, president and chief executive officer of the Federal Reserve Bank of Dallas

Dallas Federal Reserve Bank President Robert Kaplan said on Friday that the U.S. central bank could begin to allow its $4.5 trillion balance sheet to shrink "as soon as September."

At the same time, he reiterated his view that while the U.S. is near full employment, inflation has been muted, and he would like to see more progress before raising U.S. interest rates further.