Kaplan Flags Need For Imminent Tapering

Dallas Fed President Kaplan (hawk, '23 voter) reiterated his hawkish stance, pointing to data outlining the need for a decision on tapering at the Fed's September meeting, followed by an enactment of tapering in October. Kaplan noted that a delay to the tapering process would limit the central bank's flexibility.

• Kaplan has revised his full year '21 GDP outlook a touch lower (to 6.0% from 6.5%), although noted that he doesn't expect a prolonged slowing of the economy, pointing to near-term headwinds. He also said that he wouldn't be surprised if jobs growth slows in September.
• Kaplan sees headline PCE at 4.0% in '21 & 2.6% in '22.