Fed's Kaplan: Moderate overshoot on inflation probably means 2.25% or 2.5%
|The US Federal Reserve's new framework means that they will have tolerance for a modest inflation overshoot, Dallas Federal Reserve Bank President Robert Kaplan said on Thursday. "Moderate overshoot on inflation probably means 2.25% or 2.5%," Kaplan further explained.
Additional takeaways
"New Fed framework is not a commitment on what the Fed will do."
"New framework suggests US economy may have the capacity to run a hotter labour market than in past."
"It's wise to go forward not assuming the future will look like the past."
"Markets must not rely on the Fed's emergency lending programs forever; they will sunset."
Market reaction
The US Dollar Index showed no reaction to these comments and was last seen gaining 0.2% on the day at 93.08.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.