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

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 DDP 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.