Fed's Kaplan: Expecting Fed to start raising rates in 2022

Eren Sengezer FXStreet

In an interview with CNBC on Tuesday, Dallas Federal Reserve President Robert Kaplan said that his base case scenario points to a temporary surge in prices this year followed by a retreat in 2022, as reported by Reuters.

Additional takeaways

"Expecting year-over-year inflation this year to be 2.25% to 2.5%."

"The jury is out as to whether we're going to see year after year price increases and not just a temporary surge in prices."

"My forecast has improved meaningfully."

"Expecting a 6.5% growth and a 4.5% unemployment rate this year."

"Will advocate for scaling back stimulus after seeing real outcomes, not just strong forecasts."

"My forecast for removing accommodation is more aggressive than the median Fed official."

"Expecting fed to start raising rates in 2022."

"We're still in the midst of the pandemic right now."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.43% on the day at 92.13.

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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