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.