Kaplan speaking on Bloomberg TV
– We need infrastructure spending
– We are rapidly nearing full employment
– We may have to be nimble to revise forecasts
– The second half of 2016 was very strong
These might sound hawkish at first or hawkish relative to the last decade at the Fed but these are generally in line with what’s priced into the market now and what Yellen has been saying. What I find interesting at the moment is growth and the kinds of expectations different Fed members have built in. Earlier this week, growth of just 1.5% to 1.7% but said that was enough for three hikes this year.
