Kaplan: Comfortable With 'Moderate' Inflation Overshoot Up to 2.375%

The Dallas Fed leader and FOMC voter this year would be comfortable with a moderate inflation overshoot at "two-and-a-quarter or two-and-three-eighths," he told the Dallas Friday Group.

• "I would be willing to see inflation run moderately above 2%," after missing the target to the downside for many years, he said, adding that anything more than 2.375% "would be more than moderate." But his judgment is also "subject to what the conditions are."
• On the Main Street Lending Program: "The decision to restructure it is not the Fed's." It's a decision for the Treasury and Congress, he adds.
• His 2020 outlook is unchanged for the remainder of the year but the economy could expand by as much as 4%-5% in 2021, he said.
• Dismissing a V-shaped recovery, Kaplan said he sees Q3 annualized growth up by as much as 20% and Q4 GDP up 6%-7%. The recovery, he says, is much more likely to look like a "swoosh."