Fed's Kaplan now speaking on Bloomberg TV
Fed's Kaplan is now speaking on Bloomberg TV as he makes the rounds:
- sees US consumer being solid next year
- phase 1 deal better than none but uncertainty lingers
- trade issues with China will last for years
- risks balanced, hope will get some of trade stabilization
- need material change in Outlook to warrant rate change
- yield curve a sign that Fed's adjustments about right
- not seeing weakness in manufacturing spreading wider
- tight labor markets providing tailwind for consumers
- he'll be looking at financial stability issues as part of weighing up any interest rate adjustments next year
- if the yield curve weakens again, it would concern him
- US national strategy of using tariffs as part of foreign-policy causes more uncertainty for businesses
- He is willing to tolerate some over shoot of 2% inflation target as long as it's not persistent
- it's a concern B and BB corporate spreads are so tight
- keeping an eye on risk of excesses and imbalances
- globalization is an opportunity for UK, the US, and others to grow faster
- his base case for next year is that global growth will stabilize
