Fed's Kaplan: Fed needs to be aggressive with policy in teeth of pandemic
|The Federal Reserve needs to be aggressive with the monetary policy while they remain "in the teeth of the pandemic," Dallas Federal Reserve President Robert Kaplan said on Wednesday, as reported by Reuters.
Additional takeaways
"Expecting GDP growth of 6.5% for 2021."
"Unemployment rate expected to approach 4% by year-end."
"We're not out of the woods yet in this pandemic."
"There is worry about the development of a variant that is less susceptible to a vaccine."
"Household income has stayed solid and consumer spending strong because of substantial fiscal policy."
"We're expecting strong growth in part aided by fiscal policy."
"We are likely to have a lot of work to do in terms of skills training to get people back into the workforce."
"Opening schools and child care will be important to helping women with children return to work."
"It is likely near-term inflation pressures will get resolved."
"Once it becomes clear we've weathered the pandemic he will be advocating that we start withdrawing extraordinary measures."
"Worried about excesses and imbalances in financial markets."
"There's likely to be some scarring as we emerge from the pandemic."
"Financial shocks last year may have been made worse by a build-up in risk-taking leading up to the pandemic."
"Would Prefer fed to substantially taper asset purchases before adjusting rates but wants to maintain flexibility."
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen flat on the day at 92.30.
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