Fed’s Kaplan Says Three Rate Hikes are 'a Good Baseline'

The transcript discusses the Federal Reserve's pivot towards a faster pace of rate increases, with a baseline of three rate hikes for the year. It highlights the progress towards full employment and the challenges posed by inflation, influenced by global excess capacity and technological disruptions. The speaker emphasizes the importance of patience and flexibility in economic policy, considering the neutral rate to be closer to 2% than 3%. The current rates are seen as accommodative, but not excessively so, with a focus on gradually moving towards neutrality as the economy progresses.

What is the speaker's perspective on the current setting of interest rates?

What does the speaker suggest about the neutral rate of interest?