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Dallas Federal Reserve Bank President Robert Kaplan said on Thursday that he is a sceptic on yield curve control (YCC) but added that he will keep an open mind about it.

“With yields low, I’m conscious of the Fed actions that could distort market pricing but I would prefer not to go down the path of YCC,” Kaplan added. “I would be comfortable with letting inflation run moderately above target for some time.”

Market reaction

The US Dollar Index edged slightly higher in the last minutes and was last seen gaining 0.25% on the day at 93.04.