Fed’s Kaplan: Forecast is for very strong growth in 2021

In an interview with Yahoo Finnace, Dallas Federal Reserve President Robert Kaplan said on Friday that forecasts point out to very strong growth in 2021 and added that a bigger fiscal stimulus would strengthen the recovery, as reported by Reuters.

Additional takeaways

“We’re still far away from maximum employment, expecting sluggish improvement in labor market.”

“Mobility and engagement should dramatically improve after more people are vaccinated.”

“Many people who are out of work are going to need retraining.”

“Wouldn’t be surprised to see near term price pressures but they will get resolved over time.”

“Hesitating to put a timetable on when the Fed will reach 2% inflation goal.”

“Inflation dynamics have changed because of technology and globalization.”

“We’re not out of the woods yet, still in the teeth of the pandemic.”

“Once we’ve weathered the pandemic, it would be healthier to start weaning asset purchases.”

Market reaction

The US Dollar Index showed no immediate reaction to these comments and is currently unchanged on the day at 90.41.

“Source from fxstreet”

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