Fed's Kaplan sees unemployment falling to 3.7% this year
Comments from Kaplan
- Cyclical wage pressures will build in 2018
- Pricing power of business more limited than we're used to seeing at this stage in the cycle
- Sees sub-2% growth in 2020 as fiscal stimulus fades and monetary policy tightens
- Trade is critical opportunity for faster growth
- Without structural reforms, US will be sluggish in mid and long term
The comment on pricing power is the most notable one, it's another acknowledgement that inflation isn't isn't behaving like it 'should'.