Fed's Kaplan on CNBC
- Bond market predominantly driven by global search for yield
- We are making progress on employment, slow progress on inflation
- Case for hiking rates 'strengthening'
- Hesitant to raise Fed's 2% inflation target
- Debate about Fed monetary policy and targets is 'healthy'
- Liquidity is fundamental force driving bond market
- Case for removing accommodation in strengthening
Kaplan has taken the same slightly-hawkish tone before but there's still good news for the US dollar here and it's a sign of what's to come at Jackson Hole.
The question is: How will the market take a similar comment from Yellen? My guess is the dollar bulls will get far more excited and that stocks are vulnerable.
