Fed must monitor 'overheating' in wake of U.S. tax cuts - Kaplan

DALLAS (Reuters) - The Federal Reserve must be wary of the "risk of overheating" the economy in the wake of sweeping tax cuts that could raise already unsustainable debt levels even while they boost business investment, Dallas Fed President Robert Kaplan said on Wednesday.

"We want to avoid a situation where we have such an overheating that we're playing catch up," Kaplan said at a business event. The cuts are in part a concern, he said, "because I think debt levels of the country are unsustainable."

(Reporting by Lisa Maria Garza; Writing by Jonathan SpicerEditing by Chizu Nomiyama)