Published On: Mon, Apr 16th, 2018

Feds Kaplan very concerned fiscal stimulus will turn into a headwind in 3-5 years

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Speaking in Florida

He adds:

  • We cannot cut immigration and also grow GDP and the workforce
  • Does not see inflation running away even though we will see wage pressures
  • Expects 3 rate hikes this year,more next year
  • 10 year yield of 2.85% puts a limit on how high they can raise rates
  • He does not have a problem with the Fed policy being restrictive
  • Does not want to create an inversion in the yield curve.
  • Outyear sluggish growth will affect yield curve
  • US needs of China negotiations, but we should work it out

Kaplan is the President of the Dallas Fed and is not a voting member of the FOMC in 2018.  He is speakinga at the International Economic Forum of the Americas World Strategic Forum in Coral Gables Florida

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