Fed’s Kaplan sees no systemic risk from stock market valuations

Fed’s Kaplan was back on the wires stating there is no systemic risk from the stock market valuations.

Key quotes

Fed might tailor its balance sheet strategy to each type of security

When time comes to trim the balance sheet, would trim both MBS and Treasuries

Making slow gradual growth progress toward inflation goal

Fed’s neutral rate is around 2.75%.