Fed's Kaplan: Willing to tolerate inflation about 2%

Dallas Fed President Robert Kaplan, speaking to CNBC this Thursday, said that we are willing to tolerate inflation about 2%, if not persistent.

Key quotes:

   •  We don’t need to have a catch up to inflation.
   •  Can run a little above and a little below.
   •  Want to run around 2% and a little above it but if persists it would impact his policy decision.
   •  Neutral rate is 2-1/2 – 2-3/4%, should raise rates gradually to the neutral rate.
   •  US in global supply demand in oil now.
   •  We are going to be very susceptible to global shocks.
   •  There are risks in the emerging markets.
   •  Not there on concerns about emerging markets.
   •  Think technology is effecting productivity.