Fed's Kaplan: Unemployment to fall to pre-pandemic lows next year

Dallas Federal Reserve President Robert Kaplan said on Monday he expects the unemployment rate to return to pre-pandemic levels, below 4%, in 2022, as reported by Reuters.

Additional takeaways

"Sluggish improvement in mobility through June, with travel a question mark; expecting a revival in the second half."

"View that the Fed will need to withdraw extraordinary measures after pandemic has been weathered."

"US can finance debt as long as the dollar is the world reserve currency."

"Would not be surprised if Treasury yields rise as growth outlook improves."

"Short-term inflation pressures would not be a surprise, will be monitoring underlying trends."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.4% on the day at 90.00.