Fed's Kaplan speaking
The Fed's Kaplan is speaking. He is not a voting member in 2019. Kaplan is the president of the Dallas Fed. He is speaking at an event in Boston
He says:
- US has a very tight labor force
- trade tensions have heightened
- trade relationship with Mexico supports US jobs
- trade tensions may have a chilling effect on capital expenditures
- watching trade situation very carefully
- downside risks right now is to business confidence and capital expenditures but could start to affect hiring and therefore household spending
- trade with Mexico overwhelmingly in interest of US. Allows US companies to be more globally competitive
- trade with Mexico a very big deal because trade with that country involves intermediate goods
