Fed's Kaplan sees Q4 GDP up 6-7% at annualized pace

Author: Adam Button | Category: Central Banks

The latest forecasts from the Dallas Fed President:

  • Sees GDP down 4.5% in 2020
  • Sees unemployment falling to 8-9%
  • Sees Q3 GDP growing at 20% annualized
  • Willing to let inflation run at 2.25% to 2.375%
  • Willing to see inflation above 2% subject to conditions
The 2.25%-2.375% number is oddly specific but it's also not as high as many fear a 'hot' economy would be. If that's the line in the sand, it would be rate hikes sooner. Then again, if the bond market saw anything near 2% inflation for the longer term, there would have to be a massive repricing in Treasuries.

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