Fed's Bullard: Unemployment rate to fall to 6.5% by year-end

"The overwhelming majority of business have adjusted to coronavirus," St. Louis Federal Reserve President James Bullard said on Friday and added that he is confident that 100% of the gross domestic product can be produced safely.

Bullard further noted that he expects the unemployment rate to fall to 6.5% by the end of the year. Commenting on the inflation outlook, loose policy, government deficits and supply bottlenecks around coronavirus could set the stage for inflation to move higher, Bullard said.

Market reaction

The S&P 500 Index recovered modestly and was last seen losing 0.05% on the day at 3,355. Meanwhile, the US Dollar Index failed to break above 93.00 in the early American session and turned flat near 92.90.