Fed's Kaplan: Base case is one more rate cut between now and the end of 2020


While speaking at a conference in Washington on Friday, Robert Kaplan, president of the Federal Reserve Bank of Dallas, noted that he was convinced that the Federal Reserve needed to act in July and September but said his outlook was now "more balanced."

"I'm agnostic as of now about whether the Fed should act in October or take more time. I will make a judgment at the FOMC meeting," Kaplan said. "The base case is one more rate cut between now and the end of 2020."

The US Dollar Index struggled to gain traction despite Kaplan's hawkish comments. As of writing, the index was down 0.12% on the day at 97.45. Below are some additional quotes, per Reuters.

"Given the Fed and treasury bond moves this year, it may be wise to take a little time in examining data before deciding on next move."

"The Fed is actively debating a standing repo facility."

"Watching carefully issues on global dollar liquidity. It's something the Fed should be cognizant of as it discusses reserve and repo market programs."

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