Fed's Kaplan: 3 rate-hikes are good baseline
|Speaking to BBG TV, Dallas Federal President Robert Kaplan was noted saying, via LiveSquawk, that 3 Fed rate-hikes remains a good baseline case, while having a gradual wind down of balance sheet.
Key quotes:
• There are uncertainties for US consumers such as healthcare law
• Household balance sheets in US in relatively good shape
• Action on balance sheet could come as soon or late as this year, or early next
• Longer term GDP growth still is challenging
• Expect a little better growth than data suggests
• Core inflation continues to move up gradually and slowly
• Fed is still accommodative but not as much as people think
• Not factoring in fiscal policies to his forecasts
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.