Speaking in Florida

He adds:

  • We cannot cut immigration and also grow GDP and the workforce
  • Does not see inflation running away even though we will see wage pressures
  • Expects 3 rate hikes this year,more next year
  • 10 year yield of 2.85% puts a limit on how high they can raise rates
  • He does not have a problem with the Fed policy being restrictive
  • Does not want to create an inversion in the yield curve.
  • Outyear sluggish growth will affect yield curve
  • US needs of China negotiations, but we should work it out
  • Powell likely to continue a gradual, patient approach
  • Higher volatility is a tightening of financial conditions
  • I worry about debt buildup we can't see

Kaplan is the President of the Dallas Fed and is not a voting member of the FOMC in 2018. He is speakinga at the International Economic Forum of the Americas World Strategic Forum in Coral Gables Florida