Fed's Kaplan says COVID-19 resurgence is having a negative impact on travel, hospitality, leisure

Author: Eamonn Sheridan | Category: Central Banks

Dallas Federal Reserve Bank President Robert Kaplan speaking as a participant in  in a Discussion of Economic Developments and Implications for Monetary Policy  

  • Says will be downwardly revising Q3 GDP because of coronavirus 
  • says now sees full-year GDP growth at 6% for prior 6.5%
  • expects slower growth ahead
  • expects headline PCE in a range of 4%
  • expected PCE inflation in 2022 to be 2.6%
  • expects 2022 GDP growth to be 3% 
  • says economic recovery will occur sporadically because of coronavirus 
  • says he is struck by the resilience of the consumer adapting through COVID-19 
  • it is not our expectation you will see a prolonged slowing due to the delta variant
  • there is plenty of fiscal stimulus in the economy 
I've referred in the past to Kaplan as 'taper guy' given he was the first and the loudest of Fed officials to advocate for a taper. He is sounding somewhat less gung-ho with these comments. 

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