Further comments by Kaplan
- In my view, inflation is not running away from the US
- It is critical what the Fed does over the next several months
- What the Fed does in 2019 will be more significant than in 2018
For some context, money markets are not pricing in any rate hikes by the Fed for 2019 so far. The same goes for a rate cut as well. But there are some market quarters that are arguing that the Fed should start erring towards cutting rates in the near future.
Again, Kaplan is not on the voting board in the FOMC this year so take his comments lightly. But he does contribute to stuff like the dot plot, so yeah.
