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In an interview with CNBC on Tuesday, Dallas Federal Reserve President Robert Kaplan said that his base case scenario points to a temporary surge in prices this year followed by a retreat in 2022, as reported by Reuters.

Additional takeaways

“Expecting year-over-year inflation this year to be 2.25% to 2.5%.”

“The jury is out as to whether we’re going to see year after year price increases and not just a temporary surge in prices.”

“My forecast has improved meaningfully.”

“Expecting a 6.5% growth and a 4.5% unemployment rate this year.”

“Will advocate for scaling back stimulus after seeing real outcomes, not just strong forecasts.”

“My forecast for removing accommodation is more aggressive than the median Fed official.”

“Expecting  fed to start raising rates in 2022.”

“We’re still in the midst of the pandemic right now.”

Market reaction

These comments don’t seem to be having a significant impact on the greenback’s performance against its rivals. As of writing, the US Dollar Index was up 0.43% on the day at 92.13.