Speaking on CNBC
- If the economy unfolds as expected, in favor of announcing a plan a plan to taper at the September meeting and start tapering in October
- CPI today was consistent with our outlook
- There is not a demand problem in the US. The problem is supply
- still expects broadening of inflation pressures into next year
- Think the bond market is looking through these high inflation trends and expects the Fed to anchor inflation at 2%
- Does not want Fed to run at this speed for too long and for Fed to have to take more aggressive action later on
- There is in enormous amount of liquidity in the world and there is a tremendous bid in the 10 year sector
- I am divorcing my decision making on adjusting purchases with the Fed funds rate. There is different set of criteria when looking at raising interest rates
- My forecast is for a hike in 2022 but will make that decision as the economy progresses in 2022
- Delta variant may prolong supply chain disruptions
Kaplan is the president of the Dallas Fed and is not a voting member until 2023. His comments are in line with is more hawkish bias.
