Dallas Fed President Robert Kaplan argued on Thursday that the US economy’s supply issues may be structural and added monetary policy is not well-equipped to deal with them, as reported by Reuters.
Additional takeaways
“Supply-demand imbalances on material and labor are a challenge.”
“Expecting to see more people return to labor force when unemployment benefits end.”
“Worth taking seriously employers’ complaints about difficulties hiring.”
“Labor market puzzle is a matching issue, doesn’t need further monetary policy easing.”
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.7% on the day at 90.53.
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