Dallas Fed president Robert Kaplan speaking in Beijing 2 Aug 2016
- will continue to assess impact of Brexit as it will take time for consequences to unfold
- will continue to monitor impact of China's slowing growth on ccys and global financial conditions
- Q1 and Q2 US GDP disappointing but still expects 2016 GDP around 2%
- recent uptick in inflation bolsters view that we'll see 2%+ over med term
- Dallas Fed see US labour force participation rate dipping below 61% by 2024. Will negatively impact future potential GDP growth
- Fed monitoring how slowing global growth, high levels of debt-to-GDP ratio in major economies might be impacting US
- China has seen a significant increase in its debt levels. May prove unsustainable
Cautionary words understandably from the Dallas Fed head but no impact on current price action.
