Fed's Kaplan is speaking
Fed's Kaplan (non voting member in 2021 and more of a bear) says:
- fully supports outcome of the FOMC meeting this week
- more fiscal 8 would be a big help for economy
- expects US to grow by 4% 2021
- says he believes it will be time to pull back on asset purchases when it is clear the economy is recovering strongly
- As 2021 moves forward and vaccines to treat Covid-19 roll out, if the Fed is "making substantial progress on our dual mandate goals, I do think it would be healthy and very appropriate to begin the process of tapering our asset purchases."
- the economy faces a lot of uncertainty as the coronavirus pandemic rages on and vaccines to combat it make their way to the public.
- He said what is now a 6.7% jobless rate could fall to 5% or lower.
- Inflation could also pick up as the economy perks up, but said broader and longer-running trends in the economy tied in large part to technology, could dampen any price pressure jump.
Kaplan makes the comments in a Wall Street Journal interview
