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Fed's Kaplan says U.S. economy needs more fiscal support

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco, U.S., October 11, 2019. REUTERS/Ann Saphir

(Reuters) - Dallas Federal Reserve Bank President Robert Kaplan on Friday called again for more fiscal support for the U.S. economy, particularly for state and local governments struggling with budget holes, and for the millions of unemployed who are spending down savings from prior aid.

“If the savings from those do run out you are going to see consumer spending get weaker,” Kaplan said at an energy conference held online by the Dallas and Kansas City Fed banks. “This hasn’t felt as much like a recession for a lot of businesses - it will start to, if you don’t have some renewal in some form of the fiscal relief.”

Reporting by Ann Saphir; Editing by Chizu Nomiyama

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