A dovish Kaplan explained, "would like more progress on inflation before next hike"

Adding to yesterday's dovish tone from the Fed, Kaplan who is speaking at the chamber of commerce event in Lubbock Texas explained that the Fed is being patient in terms of another rate increase and that he would like more progress on inflation before next hike. Kaplan has also explained that an aging and slower workforce growth is hampering US growth.

Further comments:

• Low 10 year bond yield suggest expectations of future growth are sluggish
• Dollar has been very strong for several years
• A weaker dollar - all things being equal is helpful
• US does not have much fiscal room due to high debt level
• Would like more progress on inflation before next hike
• Would like to shed bonds in the near future
• Balance sheet unwind would be very gradual to minimize the market impact
• Low 10 year bond yield suggest expectations of future growth are sluggish
• Need to be careful on future rate hikes given expectations from low bond yields
• should be very patient and judicious in considering another US rate hike.