Dallas Fed President Robert Kaplan, speaking to CNBC this Thursday, said that we are willing to tolerate inflation about 2%, if not persistent.
Key quotes:
“¢ We don’t need to have a catch up to inflation.
“¢ Can run a little above and a little below.
“¢ Want to run around 2% and a little above it but if persists it would impact his policy decision.
“¢ Neutral rate is 2-1/2 – 2-3/4%, should raise rates gradually to the neutral rate.
“¢ US in global supply demand in oil now.
“¢ We are going to be very susceptible to global shocks.
“¢ There are risks in the emerging markets.
“¢ Not there on concerns about emerging markets.
“¢ Think technology is effecting productivity.