Fed's Kaplan: Would like to start talking about tapering sooner rather than later

Dallas Federal Reserve Bank President Robert Kaplan said on Thursday that he expects the Unemployment Rate to fall below this year, as reported by Reuters.

Additional takeaways

"US GDP will grow 6.5% this year, risk is to the upside."

"Some factors pushing up on inflation near-term will get resolved within 12 months."

"PCE inflation to end this year at 2.25%; will watch very carefully."

"Would like to begin discussions to talk about tapering sooner rather than later."

"Since December, when the Fed set the substantial further progress bar for taper, we have seen more vaccine rollout and more fiscal aid."

"Clear will meet the bar for tapering sooner than I had thought in January."

"Don't want to be preemptive but don't want to be late."

"Fed bond-buying can create excesses and imbalances."

"Will be much healthier as an economy when we can start weaning from QE."

"Will want to give advance notice of bond buy taper and do it gradually."

"Won't prejudge whether taper should be complete before Fed raises rates."

"Expecting to meet standards for Fed rate liftoff sometime in 2022."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.3% on the day at 90.97.