Dallas Fed President Kaplan on a panel:

  • Sees upside risks to energy prices in 3-5 year term
  • Forecasts 2017 GDP growth at about 2.3%
  • US consumer to underpin growth, households have the capacity to spend
  • US labor market is pretty tight
  • We should be removing accommodation and thinking about trimming the Fed's balance sheet later this year

Kaplan is a voter this year.

These comments are in line with his earlier rhetoric. The talk about shrinking the balance sheet is just getting started but it will depend on US growth picking up.