Fed's Kaplan sees a muted rebound from here
Comments from Kaplan on Bloomberg TV
- 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.