Fed's Kaplan: US GDP is likely to decline by 4.5% in 2021

Eren Sengezer FXStreet

The US consumers are still spending but they are shifting from high-contact industries to other forms of consumption, Dallas Federal Reserve Bank President Robert Kaplan said on Friday.

Additional takeaways

"Seeing US GDP down 4.5% for 2021, unemployment rate falling to between 8% to 9%."

"Expiration of unemployment benefits makes this time of great hardship and stress for lower-income workers who have lost jobs."

"Now more than ever, we need to study the experience of other countries to learn what the US can do better."

Market reaction

The US Dollar Index continues to erase its losses and just recently turned flat on the day at 93.24.

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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