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Tuesday, April 12, 2016

Fed's Kaplan: US GDP growth likely under 2% for 2016

http://www.cnbc.com/2016/04/12/feds-kaplan-gdp-growth-likely-under-2-pct-for-2016.html

Dallas Federal Reserve President Rob Kaplan appeared on CNBC's "Squawk Box" on Tuesday.
In a speech Monday, Kaplan said it would be too soon to hike interest rates later this month, but he expressed an openness to a possible increase in June. He's not a voting member of the Fed's policymaking committee this year.
Many economists expect a June rate hike, but the futures market has been more cautious, looking to perhaps December as the next tightening.
  • Underpinnings for solid growth are there
  • Dec hike was the right decision
  • Negative rates elsewhere shouldn't stop normalisation
  • US is not an island in the global economy
  • There is a cost to excessive accommodation
  • Central bank to be patient and thoughtful on policy

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