Robert Kaplan, president of the Federal Reserve Bank of Dallas
- He expects 1.9% growth in US GDP this year
- Expects 'some period of time' before meet inflation target
- Federal Reserve should be patient, gradual about rate hikes
- It is important to remove some accommodation gradually, because of costs of near-zero rates
- Sees a sustained, cautious, gradual path of Fed rate hikes
- Data from since the March meeting shows the economy is resilient
- The fact this is an election year should not be a factor in rate hike decisions
- Still assessing impact of tightening of financial conditions earlier in the year
- Sees solid US growth, but risks are slow growth abroad and potential bouts of tightening
- Federal Reserve must consider conditions outside the US as it sets policy for the US economy
Kaplan is still a noob to this central bank thing ... but these sorts of comments shows he is well on track to doing a good, boring job of it. Nothing much to frighten the markets here at all.
more to come
