The U.S. economy won’t be back on track until late 2022 or sometime in 2023, said Dallas Fed President Rob Kaplan on Tuesday.
In an essay on the outlook for the economy and Fed policy, Kaplan said he thinks the current level of the Fed’s policy interest rate between zero and 0.25% will be appropriate until the economy has weathered the pandemic and is on track to achieve the central bank’s goals of full employment and price stability.
“My best judgement is that it will take at least until late 2022 or sometime in 2023 for these criteria to be met,” Kaplan said.
It is at this point that Kaplan would take a different path than his colleagues.
At its meeting earlier in September, the Fed promised to keep interest rates at zero until inflation is on track to “moderately exceed” the central bank’s 2% target “for some time.”