Comments from Kaplan in Texas

  • Expects more slack to be taken out of jobs market
  • Sees inflation rising toward 2%
  • Unemployment rate can go lower than 4.5%

No surprises here.

Update:

  • Decline in 10-year yield suggests market belief that GDP growth will be tepid
  • Expect could start trimming balance sheet as soon as later this year, Fed should allow balance sheet decline to be phased in