Fed's Kaplan: Fed should be very cautious, patient in raising rates further

Speaking at a Q&A event, Dallas Fed President Robert Kaplan said that the Fed should be very cautious and patient in raising rates further.

Key quotes (via Reuters):

• I see rebound in economic growth for rest of year
• Inflation is very muted right now, some of it is maybe idiosyncratic
• Biggest headwind to U.S. growth is demographic; need to 'come to grips' with immigration
• One solution to slow U.S. growth is more integration with the rest of the world
• Running a trade deficit with Mexico strengthens U.S. economy, boost jobs
• Pretty darn close to full employment
• We've been surprised at how muted inflation has been
• I need to see improvement in inflation
• Monetary policy accommodation 'isn't free'