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"I
haven't seen anything from that point to today that's changed my
view," Kaplan said during a virtual town hall conversation
organized by the bank.
The U.S. labor market has a "good chance" of being at full
employment by then and of having inflation at the central bank's
2% target, Kaplan said.
Fed officials agreed last month to leave interest rates near
zero and to keep purchasing $120 billion a month in bonds until
the U.S. economy makes substantial further progress toward the
Fed's goals for inflation and maximum employment.
Kaplan repeated his view that he would support trimming back the
central bank's asset purchases sooner rather than later, and
said the Fed would want to "telegraph" those plans in advance to
give the market plenty of notice.
Inflation readings, which increased in recent months because of
imbalances caused by the pandemic, should decline in the fall,
Kaplan said. But some measures could remain elevated by year-end
if some of the disruptions persist, he said.
The Fed will monitor inflation closely and will do what it can
to ensure that consumers' inflation expectations remain anchored
near the central bank's 2% target, Kaplan said.
"I don't think people listening should doubt the Fed's
commitment to achieve that," he said.
(Reporting by Jonnelle Marte; Editing by Cynthia Osterman)
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