BRIEF-Fed's Quarles and Kaplan comments at Hoover Institution event

* DALLAS FED'S KAPLAN: KEY ELEMENT OF NEW FED FRAMEWORK IS CLARITY THAT FED WILL BE LESS PRE-EMPTIVE THAN IN THE PAST

* DALLAS FED'S KAPLAN: CLARIFIES THAT 2% INFLATION IS NOT A CEILING * KAPLAN: MY OWN SENSE OF 'MODERATE' INFLATION OVERSHOOT IS AROUND 2.25% ... NOT 2.5-3.0%

* KAPLAN: MY TOLERANCE FOR AN INFLATION OVERSHOOT WILL BE GUIDED BY RATE OF CHANGE IN INFLATION * KAPLAN: NEW FRAMEWORK BETTER DESCRIBES THE FOMC'S REACTION FUNCTION OVER THE LAST COUPLE OF YEARS

* KAPLAN: HOW INFLATION INTERACTS WITH MONETARY POLICY IS STILL EVOLVING * KAPLAN: STRUCTURAL FORCES LIMITING INFLATION ARE LIKELY TO SHOW THEMSELVES TO BE MORE POWERFUL THAN PREVIOUSLY UNDERSTOOD

* KAPLAN: PREFERS TO AVOID FORWARD GUIDANCE THAT TIES THE HANDS OF FUTURE COMMITTEES * KAPLAN: SEES A DIFFERENCE BETWEEN REMAINING ACCOMMODATIVE AND KEEPING THE FED FUNDS RATE NEAR ZERO

* KAPLAN: IN SOME SITUATIONS KEEPING THE FED FUNDS RATE AT ZERO COULD BE INCREASING ACCOMMODATION, NOT JUST MAINTAINING IT * KAPLAN: KEEPING RATES NEAR ZERO FOR TOO LONG HURTS SAVERS, LEADS TO GREATER FRAGILITIES AND EXCESSES AND IMBALANCES

* KAPLAN: EXPERIENCE OF MARCH MAKES ME MORE CONCERNED NOT LESS ABOUT THE LIMITS OF OUR ABILITY TO MONITOR EXCESS RISK TAKING * FED'S QUARLES: SEES RECOVERY PROCEEDING SOMEWHAT BETTER THAN EXPECTED

* KAPLAN: USING POLICY RULES AS A GUIDE CAN STILL BE USEFUL, BUT SHOULD NOT BE A COMMITMENT TO WHAT WE'RE GOING TO DO * ASKED ABOUT QE PURCHASES, QUARLES SAYS SHEER SIZE OF TREASURY MARKET MAY HAVE OUTPACED THE PRIVATE MARKET'S ABILITY TO ABSORB ANY STRESS

* QUARLES SAYS HARD TO TELL WHAT THE EFFECT OF CARES ACT SUBSIDY PAYMENTS BEING REDUCED WILL BE * KAPLAN: EMPLOYMENT IS PROBABLY HIGHER THAN IT WOULD HAVE BEEN ABSENT THE STIMULUS PROGRAMS

* QUARLES SAYS HAVE NOT CONSIDERED A NEGATIVE REPO RATE ON GENERAL COLLATERAL * QUARLES SAYS CONSIDERING NEGATIVE REPO RATE FOR GC 'HAS NOT BEE ON THE AGENDA AT ALL'