Comments from the Dallas Fed President:

  • Fed faces 'tricky' global situation
  • There is a cost to keep rates at zero
  • Don't want to be in a position of liftoff followed by cut back to zero
  • Rate liftoff has become a psychological barrier
  • Inflation is low for both transitory and more structural reasons
  • China not irrelevant, slowdown affects US GDP
  • Many inflation headwinds, including aging population

Kaplan is still relatively new and unknown but he certainly sounds less hawkish the Richard Fisher, who was his predecessor.