Fed's Kaplan: Treasury yield curve shows market expects sluggish growth ahead

Responding to questions from reporters after a talk at the Commonwealth Club of California, Dallas Fed President Robert Kaplan said that he is willing to be more patient on rates to wait for data on inflation.

Key quotes (via Reuters):

• Less optimistic neutral rate will drift all the way up to 3% over long run
• Treasury yield curve shows market expects sluggish growth ahead
• Yield curve, neutral rate feed into his view on how accommodative rates are, how fast rates should rise
• Asked about how many rate hikes he expects this year, says he wants to keep an open mind
• Pricing power for businesses is more limited than it has been in his lifetime