Kapan is speaking in a moderated Q&A at the 'Greater Houston Partnership Thought Leader Series'
- High debt-to-GDP ratios are a headwind
- Aware that global events can hurt financial conditions
- Businesses lack pricing power
- Growth could be slower as US population ages
- Sees 2% GDP growth in 2016, consumer is strong
- Sees unemployment falling below 5%
- There is a risk to not raising rates
- Fed ought to act in near future to remove accommodation
- Normalization will be slow and gradual
The comment on the lack of pricing power could be construed as dovish. Kaplan also has expressed worries about a Brexit at the June and sounded like a bit of an oil bear in the past. But he said he would advocate for a hike in June or July. My guess is he's leaning towards July.