Dallas Fed President Robert Kaplan said in a CNBC interview, “getting money for school reopenings, vaccine distribution and childcare are critical for economic recovery.” He’s “expecting to see an improvement in the economic mobility from June onwards.” He also sees 10-year yields to rise “if the economy grow as forecasted”.
Regarding recent market frenzy, Kaplan said, “some of the current situation you are seeing — one of the factors — is there is a lot of liquidity, and some of that relates to Fed purchases of $80 billion of Treasuries and $40 billion of mortgage-backed securities every month:
“I still think we need to be doing what we are doing right now, in the teeth of the pandemic, but again, I think if we go beyond it, it will be healthier to start limiting this liquidity and normalizing policy down the road,” he added.
