More on the monetary policy disagreements at the Federal Reserve
I posted earlier on the comments from two Federal Reserve regional presidents
- Fed's Kaplan says room for 3 rate hikes this year
- Fed's Evans says less than 3 rate hikes this year is probably appropriate
I described them as duelling comments, and indeed they are at odds, just not on everything ...
Reuters have a bit more commentary up now if you are interested:
- "2018 is going to be a good year," Dallas Federal Reserve Bank President Robert Kaplan said
- The U.S. economy is doing "extremely well," Chicago Federal Reserve Bank President Charles Evans
- Both said the economy would grow more than 2.5 percent this year, fast enough to give a further push downward to unemployment, already at a 17-year-low of 4.1 percent
- But while Kaplan said he is worried about the economy overheating, and is convinced the Fed needs to move "deliberately" this year by raising rates three times, Evans said he supports fewer as "probably appropriate" so as to allow inflation to reach and perhaps temporarily rise above the Fed's 2-percent target.
Its no secret Evans is well over to the dovish side of the spectrum. Kaplan, not so much. Disagreement is not necessary a bad thing.
E and K