Fed's Kaplan (FOMC dissenter):key element on new fed framework is clarity the Fed will be less pre-emptive than in the past
- Reiterates sense of moderate inflation is around 2.25% and tolerance for an overshoot will be guided by rate of change
- Structural forces limiting inflation are likely to show themselves to be more powerful than previously believed
- Prefers to avoid forward guidance that ties hands of future committees
- Sees a difference between remaining accommodative and keeping Fed funds rate near zero
- Reiterates in some situations keeping Fed funds rate at zero could be increasing accommodation, not just maintaining it