Kaplan Says Fed Is Clearly Accommodative Right Now

The transcript discusses the importance of patience in monetary policy, highlighting the need for gradual adjustments to the Fed funds rate. It examines economic progress, challenges with inflation, and the concept of the neutral rate. The speaker advocates for a gradual removal of economic accommodation, considering structural and cyclical forces affecting inflation. The discussion also covers the current interest rates and their potential impact on the economy, emphasizing the need for a balanced approach to stimulate growth while managing inflation.

What is the speaker's target range for the Fed funds rate this year?

• 200 to 225 basis points

• 150 to 175 basis points

• 100 to 125 basis points

• 50 to 75 basis points

Why does the speaker advocate for a gradual removal of economic accommodation?

• To increase inflation rapidly

• Due to structural forces muting inflation

• To avoid sudden economic growth

• To decrease employment rates

What does the speaker want to see before deciding on further rate increases?

• More employment data

• Lower interest rates

• More data on inflation progress

• Higher GDP growth

According to the speaker, what is the current state of interest rates?

• Deflationary

• Accommodative

• Neutral

• Restrictive

How does the speaker view the performance of the economy in relation to current interest rates?

• Indicative of a recession

• Inconsistent with accommodative policy

• Suggestive of overheating

• Consistent with accommodative policy