Feds Kaplan on CNBC
- not seeing anything that would materially change his outlook
- will continue to monitor this
- business contacts are weathering the Delta variant and businesses are seeing resiliency
- impact on businesses is more muted
- have much higher percentage of population that is vaccinated
- business and consumers are becoming more adaptable
- Hospital leaders are in a very challenging situation right now
- Hoping Fed will announce taper plan September
- Purchases are designed to stimulate demand. That was appropriate in 2020 and early part of 2021. At this point we don't have a demand problem
- We are seeing unintended side effects including excess risks taking
- There is going to be a ripple effect from housing on rents and that will affect the lower income population
- Divorces considerations on asset purchases from rate changes
- The rate decision will be made down the road although he asked still expects a rate hike in 2022
- He is in favor of a gradual taper with "gradual" for him means eight months
- We have a commitment within the new framework to anchor inflation
- Inflation affects the lower income community disproportionately. The Fed has a take that very seriously
Kaplan has dialed back his comments from August 20 where he was more concerned about the Delta variant and commented that he may have to adjust his projections. He is now off at idea.
Stocks remain negative and dipped a little through his comments (but not far from earlier low levels):
- Dow -55 points
- S&P -17 points
- NASDAQ index -55 points
