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Below are the key highlights from  Dallas Federal Reserve Bank President Robert Kaplan’s recently published interview with Reuters.

  • Intensification of trade tariffs would downgrade 2018, 2019 U.S. Economic forecasts.
  • ‘Calling out’ economic risks of trade spat in meetings with lawmakers, government officials.
  • Worried about longer-term trade effects on CapEx, currencies, geopolitics.
  • Still expects one more U.S. Rate hike this year.
  • Could be convinced of need for fourth rate hike in 2018 depending on outlook.
  • Once rates reach neutral, around 2.5 pct to 2.75 pct, will need to debate whether to go higher.