Fed's Kaplan: Monetary policy stance should adapt in light of fiscal actions

Dallas Federal Reserve Bank President Robert Kaplan said on Thursday that he expects to see elevated Personal Consumption Expenditures (PCE) inflation at least through 2021 and added there's uncertainty further ahead, per Reuters.

Kaplan further reiterated that they should start discussing QE taper as they make progress on the economy and the weathering of the pandemic. "Monetary policy stance should adapt in light of fiscal actions," he added.

Market reaction

The US Dollar Index ignored these remarks and was last seen losing 0.35% on a daily basis at 89.86.