Fed's Kaplan speaking
Fed's Kaplan is now hitting the news wires with his thoughts:
- Says 1.5% to 1.75% fed funds range is roughly appropriate setting
- Sees 2% to 2.25% GDP growth in 2020, if anything outlook has firmed in recent weeks
- Sees unemployment rate falling further, inflation rising to 2%
- Says weighing a possible rate change he will look at growth, inflation, and financial stability
- He'd the willing to tolerate inflation above 2%, but would also take financial stability into account
- He wants to actively explore options to restrain growth in Fed's balance sheet
- He wants to keep Fed balance sheet growth from fueling financial excesses, imbalances
- He is open to long-term averages for inflation target but does not want it as a commitment
The interesting comment is about the growth of the Fed balance sheet.