Fed's Kaplan: Market-determined rates showed policy was too tight before rate cuts
Comments by Dallas Fed president, Robert Kaplan
There isn't anything in here to really shake things up and also be reminded that Kaplan isn't a voting member on the FOMC this year. The above mainly just reiterates the Fed's current stance on being more 'data dependent'.
- Says he will take some time to carefully monitor developments after rate cuts
- Says he will be highly vigilant, keep an open mind on further easing
- Concerned about slowing global growth
- Worried that US manufacturing weakness could spread to broader US economy
- Says US economy is at or past full employment
- Expects inflation to reach 2% target over medium-term
- Expects 2.1% US GDP growth this year
I reckon we'll have to see how trade talks play out this week before getting a sense of whether or not they will walk back on expectations for an October rate cut next week.