Fed's Kaplan: it's health for the FOMC to start winding down its balance sheet
Fed's Kaplan: it's health for the FOMC to start winding down its balance sheet, he said in his comments at an accounting event. Inflation is still running below target, but analysts're still getting closer to full employment, he added. He noted the world is growing at a sluggish pace by historical standards. The U.S. is projected to grow a little faster than 2% this year. than Europe is doing better than last year, but he doubts China's 6.5% growth rate is sustainable. Kaplan is a voter this year, and analysts believe he'll support pulling the trigger on QT at the upcoming September 19, 20 FOMC. Analysts also suspect he'll continue to vote with the consensus to delay a rate hike, at least until later in the year when there's more information on growth, inflation, and the geopolitical environment is less shaky.