Fed’s Kaplan repeats that FOMC should proceed in 'gradual and patient manner' in raising rates

Dallas Fed President Robert Kaplan reiterated in his scheduled speech in Beijing on Tuesday, that the FOMC should proceed with gradual removal of accommodation.

Key Quotes:

Suggests gradual removal of accommodation

Fed should proceed in 'gradual and patient manner' in raising rates

Does not say if rate hike should happen at Sept meeting

Argues for more econ stimulus besides monetary policy

1Q, 2Q GDP growth rates 'have been disappointing'

Still expects 2% growth in 2016 due consumer strength

Sees labor force participation below 61% by 2024

Will negatively impact future potential GDP growth

Will take time to know ultimate impact of Brexit

Recent uptick in inflation bolsters view inflation will reach 2 pct over medium term