Fed's Kaplan sees a muted rebound from here

Author: Adam Button | Category: Central Banks

Comments from Kaplan on Bloomberg TV

Fed Kaplan
  • Expects unemployment rate at 9-10% at year end unless they can manage the virus better
  • Repeats that he sees US economy shrinking 4.5-5.0% this year
  • I would far prefer that forward guidance is tied to our dual mandate. I would not be in favor of tying it to just inflation
  • "The inflation dynamic is different now" Technology-enabled disruption and globalization has changed the way inflation works, so we can run it hotter now
  • We would be wise to be cognizant and concerned about our effects on risk assets. It's important that we emphasize that these programs will lapse
  • Fed support creates its own fragiilities in the markets and we should be very cognizant of that
  • Gasoline demand has recovered to the high 80s percentages or 90% but recovery in demand has stalled
  • You'lll have a difficult oil market for the next 12 months. I think it will begin to firm late next year. US production likely to fall to 10.8 mbpd at year end.
  • We need to study embedded leverage in markets
There is nothing new here. We will hear from Bullard, Barkin and Evans later.


For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose