Dallas Fed President Robert Kaplan said he’s based case is for Fed hike once more this year and twice next year. And he added that “mathematically there’s at least a couple more increases” to get to his neutral rate of 2.50-2.75%. He also noted that he “not advocating a pause” from there. But rather, he’ll “make that judgment as we go; I haven’t decided yet.”
Additionally he reiterated his view that GDP will grow 3% this year and slow to 2.5% next as impact of fiscal stimulus fades. Also, he warned that the tailwind from debt-funded stimulus could turn into a headwind in the out years.
