What are Fed officials saying so far in 2018? - UOB
|While we await Fed's Dudley's speech today, analysts at UOB Group came with a recap over what Fed officials are saying at the start of 2018.
Key Quotes:
"Fed’s Kaplan (non-voter) said reduced Treasuries buying by China is unlikely to disrupt Fed’s plan to gradually shed bond holdings. He maintains that three rate hikes by Fed in 2018 as the ‘base case’ backed by “a lot of strength in US economy right now”.
"Fed’s Bullard (non-voter) said a shift from the current inflation target to level-targeting approach would take “a lot” of planning but could be considered a more optimal approach under some models.Short of a formal shift in framework, policymakers could “lean” towards allowing inflation above target in order to make up for past shortfalls."
"Fed’s Evans (non-voter) said he wanted to put off rate hikes until the middle of this year. He expects some steepening of yield curve alongside a strong economy. He sees little longrun economic boost from tax cuts, expects 1.75% long-run growth."
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