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The unemployment rate in the United States is likely to rise to 20% before returning to the 8-10% range at the end of the year, Dallas Fed President Robert Kaplan said on Friday.

“The US GDP could decline at a 30% annual rate in the second quarter; contraction for the year is likely to be 4.5% to 5%,” Kaplan added and noted that the consumer spending has suffered a body blow. “The Fed’s Main Street lending facility is intended to bridge businesses through this period.”

Market reaction

The US Dollar Index largely ignored these comments and was last seen down 0.1% on the day at 98.94.