Rate hike path will be much flatter, Fed's Kaplan says

The case for removing some accommodation had strengthened, but within the context of a "much flatter" path for tightening in the future, a top US central bank official said.

In remarks to Bloomberg TV, Robert Kaplan, the president of the Federal Reserve bank of Dallas, said the monetary authority had used its tools "aggressively".

Many of these issues, such as ageing demographics, are best addressed through policies other than monetary, such as structural reforms and fiscal tools.

Infrastructure spending in particular would be very useful, he said.

He also said he saw "imbalances" in "certain places", "they are there", referencing the commercial real estate sector specifically.

As of 1336 BST the yield on the benchmark 10-year US Treasury note was dipping by one basis point to 1.57%.