Kaplan Says Fed Needs to Stay Accommodative

President Kaplan of the Dallas Fed explains his dissent on the Fed's new forward guidance, emphasizing the need for policy flexibility post-pandemic. He forecasts solid economic growth and a potential drop in unemployment by 2023. Kaplan expresses concerns about market risks due to prolonged low interest rates and highlights the importance of fiscal stimulus for economic recovery. He also evaluates the effectiveness of Fed programs, noting that some have been successful while others, like the Main Street program, face challenges.

What does President Kaplan suggest about the potential for faster growth than anticipated?

How does President Kaplan assess the current state of the markets in relation to the economy?

What is President Kaplan's view on the effectiveness of the Fed's Main Street lending program?