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.