Dallas Fed President Robert Kaplan said today that stimulus from the tax cuts last week and the government are beginning to wane. Meanwhile, the economy is starting to feel the cumulative impact of the Fed’s rate hikes. In addition, the US economy is facing risks of spill over from global slow down. In his view, the US economy could only grow just 2% this year.
Thus, Kaplan said, “we would be well served and the country would be well served if we paused and were patient for some number of months and sort of get out of the way.”
