Dallas Fed head Robert Kaplan speaks in Beijing
- Expects growth of 2.50% to 2.75% this year
- Inflation will firm in 2018 and move towards 2% target
- Unemployment rate is to go lower
- Business investment should be stronger on tax reforms
- Have to be gradual and patient in raising rates in light of headwinds
- 2019 growth will be a little weaker, will trend down to 1.75% by 2020
- Globalisation, trade is an opportunity to boost US economic growth
Kaplan also made some comments earlier in the day here.
Solid growth is something they've already conditioned the market with for the most part, the real issue will be that of inflation but Kaplan seems to believe that it will eventually come. The next thing is that if and when it does, will it be sustainable?
