Fed’s Kaplan: Inflation will firm in 2018 and move towards 2% target

Dallas Federal Reserve (Fed) President Robert Kaplan is back on the wires today, via Reuters, making his scheduled speech in Beijing.

Key Points:

The US economy in 2018 will be relatively strong.

Expects growth of 2.50% to 2.75% this year.

Inflation will firm in 2018 and move towards 2% target.

The unemployment rate is to go lower.

Business investment should be stronger on tax reforms.

Have to be gradual and patient in raising rates in light of headwinds.

2019 growth will be a little weaker, will trend down to 1.75% by 2020.