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Interest rates should stay at zero until the US economy is on track to meet the Federal Reserve’s goals, Dallas Federal Reserve President Robert Kaplan told the Wall Street Journal on Friday, as reported by Reuters. 

Additional takeaways

“Credit backstops could be extended into next year if needed.”

“If need to do more, would like to focus on small businesses and firms in person-to-person industries.”

“To leave rates at zero beyond that point is like stepping on the gas as you near an intersection.”

“Want to be careful with using more QE as a tool.”

“Don’t want to keep rates at zero any longer than you have to.”

“After the current crisis, it will be critical to wean markets off fed support.”

“Expecting social distancing, mask use to be necessary through all of 2021, even with a vaccine.”

“Possible economy will surprise on the upside, hope that’s the case.”

Market reaction

The US Dollar Index largely ignored these comments and was last seen posting modest daily gains at 93.81.