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Kaplan: Assessment of Current Economic Conditions and Implications for Monetary Policy
As you know, at its June meeting, the Federal Open Market Committee voted to increase the federal funds rate to a range of 100 to 125 basis points. I believe that this action is consistent with an approach of removing accommodation in a gradual and patient manner, based on our ongoing assessment of economic conditions. At the June meeting, we also published updated principles and plans for gradually reducing the size of the Federal Reserve balance sheet. The purpose of this essay is to provide a synopsis of my current views regarding economic conditions in the U.S., Mexico, and globally, and my thoughts regarding the ... (full story)