Fed's Kaplan: Decision on taper to be separately from that on rates

Eren Sengezer FXStreet

Dallas Fed President Robert Kaplan said on Friday that they will make the decision on taper separately from the decision on rates, as reported by Reuters.

Additional takeaways

"Still expecting GDP to grow 6.5% this year but watching Delta variant closely."

"By and large, most businesses say demand is strong; what they are dealing with is supply issues."

"Masks, vaccines probably the only tools we have in this war and we are in a war."

"Price pressures are broadening, business confidence in raising prices is increasing."

"Low and moderate-income communities are increasingly expressing concern about price pressures."

"If we saw Delta variant would be persistent or start to affect demand, we would have to adjust policy views accordingly."

Market reaction

These comments don't seem to be having a noticeable impact on the USD's performance against its major rivals. As of writing, the US Dollar Index was virtually unchanged on the day at 93.56.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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