Fed’s Kaplan: wants to see sustained GDP growth to back four hikes this year
|Dallas Fed President Robert Kaplan, speaking to Bloomberg TV this Friday, was noted saying that his base case is for three rate hikes for 2018 and would need to see sustained GDP growth in order to back four rate hikes this year.
Key quotes:
• Cautions that growth next year is to be somewhat weaker.
• Will tolerate some moves above 2% inflation.
• Trade is an opportunity, concerned if NAFTA is scrapped.
• Big threats to US are slower workforce growth and debt.
• Doesn't see corporate debt to GDP as a 'red flag'.
• Oil prices is not a danger to the US economy.
• There's spike risk to upside with oil prices.
• Worried about sustainable economic growth.
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