The Fed should issue a "hawkish pause" in its rate hike cycle, the former Dallas Fed President said.
That's because recent banking chaos is still in the early stages of unfolding, Robert Kaplan told Bloomberg.
"I think we're in the early stages, not the late stages of this banking situation," Kaplan told Bloomberg in a televised interview early Wednesday.
There's an 87% probability policymakers will raise the Fed funds rate by 25 basis points, bringing it to 5%-5.25%.
In terms of the Fed, "let's say they raise then pause, or they pause and and signal a so-called hawkish pause, either way, the rhetoric needs to be that the Fed stands ready to raise rates," said Kaplan.