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The US economy has bottomed out and a rebound in activity could be witnessed in the second half of 2020 and in 2021, Dallas Federal Reserve Bank President Robert Kaplan told Reuters on Thursday. Kaplan further added that downside risks to forecast will remain without ramped-up coronavirus testing.

Additional takeaways

“My growth forecast assumes consumers are willing to travel, eat out, re-engage broadly in the economy.”

“A massive increase in testing is critical for consumers to be willing to re-engage.”

“Under the baseline forecast, unemployment falls to 10%-11% by year’s end, under 7% by the end of 2021.”

Market reaction

The US Dollar Index largely ignored these comments and was last seen losing 0.57% on the day at 98.38.