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Dallas Federal Reserve's Kaplan is crossing the wires and has stated that the key element of the new Fed framework is clarity that the Fed will be less pre-emptive than in the past.
Additionally, Kaplan explained clarifies that the 2% inflation is not a ceiling.
''My own sense of 'moderate' inflation is around 2.25% ... not 2.5-3.0%,' Kaplan said.
''My tolerance for an inflation overshoot will be guided by rate of change in inflation and a new framework better describes the FOMC's reaction function over the last couple of years.
Kaplan stated that how inflation interacts with monetary policy is still evolving.
More to come...