Speaking on panel Q&A in Dallas
Robert Kaplan is a non voting member on the FOMC this year.
- Expects 1.75% US GDP growth in 2016 enough to take out further slack from labor market
- Jobless rate will slowly go down
- Does not see evidence of US economy overheating
- Fed will be patient; does not want to raise rates precipitously
- Economy's problems are structural
- Rates are this low because of market forces
- Sees oil supply/demand balanced in first half of 2017
- Banking sector returns are disappointing
- Brexit impact on the US will be marginal unless other countries look to leave the EU
- Would love once rates are higher, to let the balance of the MBS run off
- Trade in the US is good as a whole, but the US has to do better training people who have lost their job because of trade