Fed's Kaplan: 10-year yield is a natural constraint on how high Fed can raise rates

Dallas Fed President Kaplan continues to give his remarks in El Paso, Texas, with key quotes (via Reuters) found below:

• Can afford to be patient in removing accommodation
• Decline in 10-year yield is primarily due to lower expectations for U.S. growth
• 10-year yield is a natural constraint on how high the Fed can raise rates
• Fed should be open to new ideas about governance, as long as retain political independence
• Must be very careful not to have a tax cut that is funded by increasing the deficit
• Must be very careful not to have a tax cut that is funded by increasing the deficit
• A deficit-funded tax cut would create headwind for future economic growth
• Would like to see a discussion of immigration reform, thoughtful infrastructure investment