Concerned about downside risk of virus variants

Dallas Federal Reserve President Robert Kaplan noted on Monday that he is concerned about the downside risks of the coronavirus variants, as reported by Reuters.

Additional takeaways

“I believe mobility will improve this year if get the vaccines rolled out and they are effective against variants.”

“Forecast for 5% growth this year depends on continued support for unemployed, and for vaccine rollouts.”

“Will want to see real evidence we have weathered pandemic before adjusting asset purchases.”

“The wisest thing now is to let the economy unfold, be patient, don’t prejudge.”

“We are looking for persistent trends in inflation, as opposed to transitory ones.”

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.4% on the day at 90.95.