The Federal Reserve's policy-making committee was "prudent" in keeping interest rates unchanged at its last two meetings, a top Fed official said Wednesday.
In his first public remarks, recently appointed Dallas Fed President Robert Steven Kaplan said U.S. monetary policy should remain accommodative for some time. He noted that maintaining easy policy does not necessarily mean holding the federal funds rate near zero, where it has sat since the aftermath of the global financial crisis.
Keeping rates near zero risks distorting investments and business decisions, Kaplan added. He noted that the Fed will normalize gradually.