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  • Dallas Fed president Kaplan: Fed'new strategy is not a radical change but an affirmation of the way they've been operating - Bloomberg
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28.08.2020, 12:19

Dallas Fed president Kaplan: Fed'new strategy is not a radical change but an affirmation of the way they've been operating - Bloomberg

  • It will take a while for inflation to get back to 2%
  • Technology-enabled disruption is putting downward pressure on prices
  • For me, inflation a little bit above 2% means maybe 2.25% but Fed seeks flexibility
  • Fed needs to be conscious of financial stability and excesses that could exist as a result of their policies
  • I don't view average inflation targeting as a radical change, it's an affirmation of how we've been operating for some time
  • Says he would prefer to wait for more clarity on the path of the virus before Fed gives more forward guidance
  • I think it's very important that we indicate that the pandemic programs will lapse
  • I'm particularly concerned about debt buildup
  • Thinks unemployment will end the year near 8% unless there is a greater resurgence of the virus
  • Willing to have a little more inflation in order for the labour market to strengthen and bring in underrepresented groups

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