Kaplan: Higher Fed Funds Rate in 2017 Is Appropriate

The transcript discusses the current economic situation, focusing on whether the federal funds rate is appropriate. It suggests that a higher rate in 2017 might be more suitable and debates the pace of removing monetary accommodation. The speaker outlines criteria for rate decisions, emphasizing progress towards full employment and price stability. The concept of the neutral rate is explored, indicating a shift towards a neutral economic stance as fiscal policies take effect. The overall goal is to gradually move towards a neutral stance while considering employment and inflation objectives.

What is the neutral rate according to the speaker, and how does it relate to current economic conditions?

What does the speaker imply about the future of monetary accommodation and its relation to fiscal policy?