Fed’s Kaplan: Economy’s supply issues may be structural

Dallas Fed President Robert Kaplan argued on Thursday that the US economy’s supply issues may be structural and added monetary policy is not well-equipped to deal with them, as reported by Reuters.

Additional takeaways

“Supply-demand imbalances on material and labor are a challenge.”

“Expecting to see more people return to labor force when unemployment benefits end.”

“Worth taking seriously employers’ complaints about difficulties hiring.”

“Labor market puzzle is a matching issue, doesn’t need further monetary policy easing.”

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.7% on the day at 90.53.

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