Speaking at the Economic Club of New York, FRB Dallas President Kaplan (voter, centrist) said that he would like the Fed to be more cognizant of financial stability issues, and that he is "sympathetic" to concerns that the Fed's actions might be leading to mispricing of risk assets, Reuters reported:
Kaplan said these concerns should be part of the Fed's ongoing policy framework review. He also said that he would be open to a range for the inflation target (perhaps an acknowledgment of the fact that the Fed has... had trouble hitting its 2% target).
On Fed technical issues, he argued that they should have a structure such that they can have the smallest balance sheet possible.
He believes that the economy has changed dramatically, and that the neutral rate is much lower post-recession. He believes that a shortage of workers is affecting GDP growth, and that immigration is crucial to (currently declining) workforce growth.
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