Federal Reserve Bank of Dallas President Robert Kaplan spoke during Sunday on CBS’ “Face the Nation”, as per the Reuters. The Fed policymaker anticipates a recovery in the US job growth but remains stick to his earlier forecast of 8.0% unemployment rate for the year.
Key quotes
We’re on our way down right now.
We’re going to get positive job growth in June, July and from here. Even with that growth, we’re going to end the year with an elevated unemployment rate.
Unemployment benefits could be ‘restructured to create more incentives for people to go back to work.’
A more inclusive economy where everyone has an opportunity will mean faster workforce growth, faster productivity growth and will grow faster.
Agreed with his counterpart at the Atlanta Federal Reserve Bank, Raphael Bostic – the Fed’s only African-American policymaker – who on Friday called for an end to racism and laid out ways the U.S. central bank can help.
FX implications
The news should ideally help the market’s risk sentiment but seems to have been largely ignored as the AUD/USD pair began the week on the back foot around 0.6845.
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