Comments from the Dallas Fed President
- Looking for evidence inflation headed to 2% in medium term
- Inflation progress would make hike appropriate
- China capital flows management could spark volailtity
- Fiscal policy, structural changes may provide upside economic risks
- Dallas Fed sees 2.4% GDP growth this year
The headlines are from an essay Kaplan published on the Dallas Fed website.
"I am of the view that, despite recent weakness, as slack continues to be removed from the labor market, headline inflation should reach, or exceed, the Fed's 2 percent objective over the medium term. However, I will be closely watching this measure in the months ahead in order to confirm that recent weakness is indeed transitory and that we are continuing to make progress in reaching our inflation objective," he wrote.
Overall, Kaplan sounds a bit skeptical but he's on board with a hike in December.
