- Dallas Fed president Kaplan expects Fed to start raising rates in 2022 - CNBC
Market news
23 March 2021
Dallas Fed president Kaplan expects Fed to start raising rates in 2022 - CNBC
- Says jury is out as to whether we're going to see year after year price increases and not just temporary surge in prices
- Base case is to see a temporary surge in prices this year so that inflation will settle down next year
- Expectis year-over-year inflation this year to be 2.25% to 2.5%.
- Says his forecasts has improved meaningfully
- Expects 6.5% growth and 4.5% unemployment this year
- Says he will advocate for scaling back stimulus after he sees strong outcomes, not just strong forecasts
- Says his forecast for removing accommodation is more aggressive than the median
- First step to withdrawing accommodation is to reduce asset purchases
- Says he would expect the 10-year yield to continue rising from here to 1.75%-2.00%
- Still believes inflation will prove somewhat temporary and will settle down next year
- Sees no evidence of politics influencing FOMC Chairman Jerome Powell or other officials
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