⁍ U.S. Dallas Federal Reserve President Robert Kaplan said Monday he is ‘completely’ on board with keeping interest rates at their current near-zero level even into 2023.

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⁍ Kaplan worries a vow to keep them there even longer risks excesses and imbalances in financial markets.

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⁍ Last week the Fed promised not to raise rates until the economy reaches full employment and inflation is on track to moderately exceed the Fed’s 2% target.

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– The Federal Reserve’s promise not to raise interest rates until the job market is at full employment and inflation is at 2% isn’t sitting well with at least one Fed official. “I’m a big believer if you make a commitment like this, you need to fulfill it, unless there’s an extraordinary reason why you can’t,” Robert Kaplan, president of the Dallas Fed, tells Reuters. “My worry was that this would encourage in the shorter run more risk- taking and maybe create imbalances and instabilities.” Kaplan, who dissented from the Fed’s rate-hike plan last week, says he believes the economy will be on track for full employment by late 2022 or into 2023. The promise to hold rates at their current near-zero level “certainly understand why you’d want to maintain a high level of accommodation,” he says, “but do you actually want to be increasing the level of accommodation? I don’t know if you do or don’t, and that’s the point.”