Dallas Fed chief Kaplan urges 'very patient' approach

The head of the Dallas Fed cautioned his fellow rate-setters on Monday not to "overdo it" on tightening monetary policy.

In an interview with the Financial Times, Federal Reserve bank of Dallas chief, Robert Kaplan, urged a "very patient" approach to setting rates, adding that he was seeing signs of a slowdown in interest rate-sensitive parts of the economy.

He also reportedly predicted that US economic growth would slow over the next two years.

"The fiscal stimulus has the effect of maybe masking some of these other developments," he reportedly said.

"I don’t know how late we are [in the economic cycle] but we are later, and so I think the fact that inflation readings are more muted also gives us some latitude which allows us to be patient."