Fed's Kaplan says 1.5%-1.75% range is 'roughly appropriate' setting for fed funds rate
|Fed's Robert Kaplan from Dallas, who is a centrist and a voting member this year is crossing the wires.
- Fed's Kaplan sees 2% to 2.25% US GDP growth this year, if anything outlook has 'firmed' in recent weeks.
- Kaplan sees unemployment rate falling further, inflation rising to 2% goal.
- Kaplan says a 'material change' to him means a change in outlook for growth versus potential.
- Kaplan says in weighing a possible rate change, he will look at growth, inflation, and financial stability.
- Kaplan says he'd be willing to tolerate inflation above 2%, but would also take financial stability into account.
- Fed's Kaplan says he wants to actively explore options to restrain growth in fed's balance sheet.
- Fed's Kaplan says he wants to keep Fed balance sheet growth from fueling financial excesses, imbalances.
- Kaplan says he is open to longer-term averaging for inflation target, but does not want it as a 'commitment'.
About Kaplan
Kaplan (centrist): The Dallas Fed chief is no bullish on the economy but is watching the yield curve. Should we see rats on the long end tick higher, he will likely be on the air of caution and want to see a dovish committee taking heed,
– Effects of a politicized Fed on markets during US election year
As a voting member and being a centrist, his comments are critical this year – which way will he be swayed? All eyes on inflation running much higher than his tolerance level.
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.