Kaplan puts his vote in for the inflation average
The Fed's Kaplan - who is more of a hawk - says that "inflation moderately above 2%" means 2.25% and not 2.5% or 3%.
He also adds that:
- It's wise to admit we don't know how inflation will unfold, given technological disruptions
- Fed does not want to keep rates at 0% any longer than they have to
- After the current crisis, it will be critical to win markets off Fed support
- He expects social distance in, mask use necessary through all of 2021 even with a vaccine
- It's possible economy will surprise on the upside, hopes that's the case
Kaplan's comments maybe are not at the Bullard extreme but is more positive and more hawkish compared to some others
