Speaking at chamber of commerce event in Lubbock Texas

There is no prepared text but Q&A session. I will add to the post as the headlines trickle in.

He adds:

  • Aging, slower workforce growth hampering US growth
  • US does not have much fiscal room due to high debt level.
  • Being patient in terms of another rate increase
  • Would like more progress on inflation before next hike
  • Would like to shed bonds in the near future
  • Balance sheet unwind would be very gradual to minimize the market impact
  • Low 10 year bond yield suggest expectations of future growth are sluggish
  • Need to be careful on future rate hikes given expectations from low bond yields
  • SHould be very patient and judicious in considering another US rate hike.
  • Dollar has been very strong for several years
  • A weaker dollar - all things being equal is helpful
  • Market valuation alone isn't enough for me to be alarmed
  • I worry about a correction accompanied with leverage
  • WIthout NAFTA trade deal, US jobs would be lost to Asia

Kaplan is sounding more dovish - especially with regard to the path of rate hikes.