Fed’s Kaplan & Mester comments

We have both Kaplan and Mester crossing the wires:

Fed’s Mester:

• IOER  tweak was not a signal on policy, but a technical adjustment
• Inflation is a bit low, labour mkts are ‘very strong’
• Interest rates are at ‘neutral’, we’re now in a good spot

Fed’s Kaplan:

• Fed rates are in the neighbourhood of neutral.
• High debt could amplify downturn.