Below are key takeaways, via Reuters, from the recently published essay by the Dallas Fed President Robert Kaplan.
- U.S. Central bank has met goals, should raise interest rates gradually to neutral level.
- Sees three to four more rate hikes before neutral level reached.
- Once rates reach neutral he’d be inclined to ‘step back and assess’ outlook.
- Sees U.S. Gdp growth at 3 pct this year.
- Yield curve suggests United States is ‘late’ in economic cycle.
- Gradual rate hikes give ‘best chance’ for extending U.S. Economic expansion.
- Will watch yield curve as he judges pace of rate hikes.
- Will also monitor for any impacts from global instability.
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