- Dallas Fed president Kaplan: Fed'new strategy is not a radical change but an affirmation of the way they've been operating - Bloomberg
Market news
28 August 2020
Dallas Fed president Kaplan: Fed'new strategy is not a radical change but an affirmation of the way they've been operating - Bloomberg
- It will take a while for inflation to get back to 2%
- Technology-enabled disruption is putting downward pressure on prices
- For me, inflation a little bit above 2% means maybe 2.25% but Fed seeks flexibility
- Fed needs to be conscious of financial stability and excesses that could exist as a result of their policies
- I don't view average inflation targeting as a radical change, it's an affirmation of how we've been operating for some time
- Says he would prefer to wait for more clarity on the path of the virus before Fed gives more forward guidance
- I think it's very important that we indicate that the pandemic programs will lapse
- I'm particularly concerned about debt buildup
- Thinks unemployment will end the year near 8% unless there is a greater resurgence of the virus
- Willing to have a little more inflation in order for the labour market to strengthen and bring in underrepresented groups
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