Dallas Fed President Robert Kaplan said Fed is reaching its dual mandate of price stability and full employment. He saw strong GDP growth this year. Nonetheless, he also pointed to recent surged in 10-year Treasury yield and said it’s “telling me that prospects for future U.S. growth are somewhat sluggish (and) that outward growth is looking a little more uncertain.”
Besides also expected inflation to just stay around Fed’s target as the impact of fiscal stimulus fades in 2019. He added “to the extent that (inflation) gets above our target, our base case is that that move will be more gradual than something more sudden or substantial.”
