Fed's Kaplan: Would prefer to taper sooner than end of year

In an interview with Bloomberg TV on Wednesday, Dallas Fed President Robert Kaplan noted that they are seeing a broadening of price pressures, per Reuters.

Additional takeaways

"Expecting 2.4% inflation next year will be broad-based."

"There's still a lot of supply constraints in labor market."

"Supply-demand imbalances are likely to persist."

"Not expect explosive headline numbers in jobs report."

"Would prefer to taper sooner than end of year."

"Earlier taper will mean more flexibility later."

"Adjusting Fed's asset purchases will go much better this time than last time."

"People are on notice adjustments are coming, the only question is when."

"We are going to get to substantial further progress sooner than had expected."

"Asset purchases are not effective in addressing supply issues."

"Have made progress on inflation progress, need more progress on labor front."

"Ready to taper sooner because of questions about efficacy, side effects."

Market reaction

The US Dollar Index preserves its bullish momentum following these comments and was last seen trading at its highest level since early April at 92.40, rising 0.35 on a daily basis.