News

Fed's Kaplan: Unemployment could reach 8% at year's end

The unemployment rate in the US could reach 8% at the end of the year and it will take some time to bring that number down, Dallas Fed President Robert Kaplan told CNBC on Thursday.

Additional takeaways

"Impact of a production cut to oil will be welcome by the industry in the short-run."

"Even with a substantial move from Saudis and Russia, will be a long time working off oil inventories."

"Strength of consumer will be a big challenge and question mark."

"The Fed is working at breakneck speed to get the main street lending facility up and running."

"Markets are by and large working reasonably well."

"Credit spreads are wide; that's a pricing issue, not a market function issue."

"The US service sector, the consumer will come out more challenged, and more fiscal action will be needed."

Market reaction

Wall Street's main indexes cling to strong gains on Thursday. As of writing, the S&P 500 and the DJIA were up 1.9% on the day while the Nasdaq Composite was adding 1.3%. 

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