Fed's Kaplan: Fed should start asset purchase adjustments as soon as possible

Dallas Fed President told Bloomberg TV on Friday that the Fed should start the asset purchase adjustment as soon as possible, per Reuters.

Additional takeaways

"Business contacts say supply-demand imbalances may last longer than expected."

"Labor shortages may be persistent because of an increase in retirements and caregivers leaving the workforce."

"Inflation will be in the range of 2.5% next year but that could go up."

"Low-to-moderate-income communities are seeing a greater share of their wallet going to gas, food and autos."

"Decisions on the asset purchases should be separated from decisions on the fed funds rate."

"Tapering should be done over about eight months."

"Don't think the resurgence of the virus is going to change the economic outlook."

Market reaction

The greenback continues to outperform its rivals following these comments and the US Dollar Index was last seen rising 0.12% on the day at 93.14.