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Analysts at ANZ Bank New Zealand  Limited  explained that  in a television interview, Dallas Fed President Robert Kaplan downplayed the recent market gyrations, saying that volatility is typical and that markets are functioning properly.  

Key Quotes:

“On the economy, he said that he expects some slowing in growth. He reiterated the mantra that the Fed is following the data in determining the appropriate path for monetary policy and emphasised the importance of not being rigid in setting the path for Fed Funds. He also said that, given the closing in the gap between the Effective Fed Funds Rate and IOER, there is a possibility of more technical adjustments to IOER.  

The Cleveland Fed President also gave an interview, saying that the market volatility is a risk to the economic outlook but isn’t changing minds yet.”