Fed's Kaplan highlights

Fed's Kaplan headline from interview:

  • intensification of trade tariffs would downgrade 2018/2019
  • Calling out economic risks of trade spatt in meetings with lawmakers/Government officials
  • worried about longer-term trade effects on capital expenditures, currencies, geopolitics
  • he still expects one more US rate hike this year
  • could be convinced of the need for 4th rate hike in 2018 depending upon outlook
  • once rate reaches neutral around 2.5% to 2.75%, will need to debate whether to go higher