Fed's Kaplan: 3 rate-hikes are good baseline

Haresh Menghani FXStreet

Speaking to BBG TV, Dallas Federal President Robert Kaplan was noted saying, via LiveSquawk, that 3 Fed rate-hikes remains a good baseline case, while having a gradual wind down of balance sheet.

Key quotes:

• There are uncertainties for US consumers such as healthcare law
• Household balance sheets in US in relatively good shape
• Action on balance sheet could come as soon or late as this year, or early next
• Longer term GDP growth still is challenging
• Expect a little better growth than data suggests
• Core inflation continues to move up gradually and slowly
• Fed is still accommodative but not as much as people think
• Not factoring in fiscal policies to his forecasts

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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