Fed's Kaplan: Most forces will be disinflationary over next couple of years

Comments from Kaplan

Kaplan says that despite the short-term rise in food prices, most forces will be disinflationary in the next couple of years.

I think he's right at least through 2021 and probably 2022 but the big forces I see that are becoming structural are:

1. Ultra-low rates for the long-term
2. Ultra-easy fiscal policies
3. Re-shoring

Those are undoubtedly inflationary. You can toss in some political factors like less immigration, boosting minimum wages and a resurgence of unionization if that's your cup of tea as well. There's also a good debate about possible inflationary pressures of an aging population as well.

Other comments:

• Says he has concerns about yield curve control but wouldn't rule it out and says it's something the Fed should look at