Fed's Kaplan: Concerned about excess risk-taking on Fed's new guidance

In an interview with Bloomberg TV on Monday, Dallas Federal Reserve Bank President Robert Kaplan said that he expects zero rates will be appropriate for the next two-and-a-half to three years.

Additional takeaways

"By 2023, the US could start to approach 3.5% unemployment."

"Once the US gets to the point of lower unemployment, not sure Fed needs to still leave rates at zero."

"Not sure how much benefit the Fed's new rate vow would deliver, concerned about excess risk taking."

"Believed costs of new low rate vow was not worth the benefits."

"Forecast of strong growth for this year assumes some further fiscal support."

"Market cap to GDP is at historic highs, and normally some kind of correction can be helpful."

"Monetary policy is not primary driver of economic outlook now; that's the virus."

"Fed is looking at ways to make Main Street Lending Program more attractive."

Market reaction

The US Dollar Index largely ignored these remarks and was last seen gaining 0.3% on the day at 93.29.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD under pressure under 1.1850 amid US election concern

EUR/USD is under some pressure below 1.1850 the anti-risk dollar is drawing haven bids on reports of meddling in US elections and fading prospects of an imminent US stimulus deal. US jobless claims are eyed.


GBP/USD drops below 1.31 amid negative rate talks

GBP/USD has slipped under 1.31 after BOE member Haldane reiterated the bank is studying negative rates. Earlier, the resumption of Brexit talks boosted the pound. Coronavirus measures and restrictions are eyed.


Gold off lows, still in the red around $1920 region

Gold traded with a mild negative bias through the early European session, albeit has managed to trim a part of its daily losses to the $1911-10 region.

Gold News

Forex Today: Foreign intervention in US elections weighs on mood, jobless claims, politics eyed

Concerns about foreign intervention in the US elections have weighed on the market mood, allowing the dollar to recover after Wednesday's losses. Intense Brexit talks resume in London, boosting the pound.

Read more

WTI: Buyers lurk around 100-day EMA

WTI bounces off $39.83, the lowest in one week, to battle 50% Fibonacci retracement. EIA inventories recovered from -3.818M prior, -1.021M forecast. The energy benchmark dropped the lowest since October 15 the previous day.

Oil News