Dallas Fed president Robert Kaplan is speaking to Bloomberg TV
- Cautions that growth next year is to be somewhat weaker
- Wants to see sustained GDP growth in order to back four rate hikes this year
- Will tolerate some moves above 2% inflation
- Trade is an opportunity, concerned if NAFTA is scrapped
- Big threats to US are slower workforce growth and debt
- Doesn't see corporate debt to GDP as a 'red flag'
- Oil prices is not a danger to the US economy
- There's spike risk to upside with oil prices
- Worried about sustainable economic growth
- Neutral Fed funds rate level at 2.5% to 2.75%
- Will be watching yield curve very carefully
- Yield curve reflects sluggish growth outlook
- Fed should be moving gradually to neutral stance
- Thinks inflation dynamics have changed
Do take note that Kaplan isn't a voting member in the FOMC this year. And so far his comments aren't offering anything new.
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