Dallas Fed Kaplan speaking. Nonvoting member in 2021
- Sees a broadening the price pressures that are going into other sectors
- Expects 2.4% inflation next year to be broad-based
- We will see evidence of whether the price pressures are transitory
- There are still a lot of supply constraints in the labor market
- Supply/demand imbalances are likely to persist
- Don't expect the explosive headline numbers in jobs report
- Business contacts say that they cannot find workers
- Would prefer to taper sooner than the end of year.
- Earlier taper will mean more flexibility later.
- We will get to "substantially further progress" sooner than we expected
- Asset purchases aare not effective in addressing supply issues
- People are on notice adjustments are coming, the only question is when
- He expects Fed asset purchases will go much better this time than the last time (i.e. no or limited taper tantrum).
- He's ready to taper sooner because of questions about efficacy, side effects
- Tapering should be done gradually
Kaplan has been more hawkish. He is not a voting member in 2021. He will be a voting member next in 2023. Kaplan is the Fed president in one of the more powerful (economically) districts including the state of Texas.
