Robert Kaplan, a member of the Federal Reserve, made the following statement:
- There are no effects yet on the underlying economy.
- Current market valuations high relative to history.
- Employment is likely to overshoot full levels.
- Overshooting full levels of employment can lead to some imbalances elsewhere.
- Just concern about the recent tax legislation is what will lead to higher debt to GDP.
- Neutral interest rates are likely to remain below historical levels.
- It is wise for the Fed to remove accommodation, but patiently.
