Fed's Kaplan: Resurgence of virus has muted or slowed a rapid recovery

The US economy needs a continuation of unemployment benefits and aid to state and local governments, Dallas Fed President Robert Kaplan told CNN on Wednesday.

Additional takeaways

"Economy will rebound in the third quarter but the pace will depend on the virus."

"Expecting annualized 20% GDP growth in Q3 and for 5% contraction for the year."

"The resurgence of the virus has muted or slowed a rapid recovery."

"Economies may need to roll back in certain locations if the virus starts to overwhelm health care systems."

"We're going to have to learn to manage the disease through the end of 2021 and it will require widespread use of masks."

Market reaction

The US Dollar Index (DXY) continues to erase its losses but still has a long way before turning positive for the day. As of writing, the DXY was down 0.49% on the day at 92.80.