Fed's Kaplan: Jury is out on Q4 because of virus

Comments in a Bloomberg interview

• We need to get through the next couple of quarters
• Businesses will be optimistic once the virus is behind us
• Sees 3.5% GDP growth in 2021, mostly coming later one
• Financial conditions are relatively loose
• Failing to extend some fiscal aid would hit economy
• inflation may be more muted than people expect
• Fed used to try to preempt inflation by raising rates; now see benefits of running economy hotter
• may have to take more aggressive action if inflation is rising rapidly than if just gradually