The hawks are getting more hawkish
Mester spoke to Bloomberg in an interview.
- US consumers are holding up well
- Inflation expectations are reasonably well-anchored
- Tax plan unlikely to have a major impact on growth
- We will see some wage pickup
- Fiscal policy only one part of 2018 economic picture
- Hard to get to 3% GDP growth
Kaplan and Mester both downplayed the impact of the tax plan today.