Fed's Kaplan on CNBC
- Bond market predominantly driven by global search for yield
- We are making progress on employment, slow progress on inflation
- Case for hiking rates 'strengthening'
- Hesitant to raise Fed's 2% inflation target
- Debate about Fed monetary policy and targets is 'healthy'
- Liquidity is fundamental force driving bond market
- Case for removing accommodation in strengthening
Kaplan has taken the same slightly-hawkish tone before but there's still good news for the US dollar here and it's a sign of what's to come at Jackson Hole.
The question is: How will the market take a similar comment from Yellen? My guess is the dollar bulls will get far more excited and that stocks are vulnerable.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.