More from Fed's Kaplan
- Epidemiologists have warned him we could face one more Covid surge
- Fed will need to withdraw extraordinary measures after pandemic has been weathered
- Sees sluggish improvement in mobility through June, with travel a question mark: Expects revival in 2nd half
- US can finance debt as long as dollar is world reserve currency
- would not surprise him if treasury yields rise as growth outlook improves
- short-term inflation pressures would not be a surprise, will be monitoring underlying trends
Kaplan is the president of the Dallas Fed. His comments are tilting to more hawkish in relation to other Fed officials including Chairman Powell.
Earlier today Kaplan said:
- Expects the U.S. economy to grow at about a 5% pace this year
- He could be underestimating the strength of the post-pandemic recovery
- If we are wrong, the risks are to the upside - we may grow faster
The Fed last projected in December that they expect 4.2% growth this year. That will likely be raised in light of the potential for $1.9 trillion Biden stimulus package and increased growth.
