Fed's Kaplan speaks in Dallas

He adds:

  • Tax cuts could help boost capital expenditures further this year
  • We're going to have a pretty good year in 2018
  • Cyclical inflation pressures no doubt building
  • Global growth is a good tailwind
  • Technology creates some headwind for inflation
  • Fed is at risk of having to play catch-up
  • Inverted yield curve is a good indicator of a recession
  • yield curve flattening on sluggish growth outlook
  • Yield curve flattening in part on global liquidity
  • US going to overshoot employment into 2018 in 2019
  • Pretty confident US tax cuts will boost business investment, but there are concerns
  • Concerned about tax cuts raising already unsustainable US debt levels

Kaplan did vote for the hike in December. He is not a voting member in 2018.