Dallas Fed President Kaplan warns that unemployment rate in the US will remain high by the end of the year.
Dallas Fed President Robert Kaplan said that unemployment will remain high by the end of this year, although employment in the US will increase in the coming months.
In the evaluation of CBS’s “Face the Nation” program, Kaplan said, “We will see positive employment increase in June, July and after that. Despite this increase, however, we will close the end of the year with a high unemployment rate. ”
Kaplan said the unemployment rate will close the year by 8 percent or more. This rate dropped to 13.3 percent in May, and surprised the economists who expect businesses closing down due to coronavirus to maintain their impact on the labor market and therefore increase.
Fed officials did not change the policy rate at their meeting last week, and noted that they expect the interest rate to be kept at these levels in 2022 to help the economy recover, which has shown its strongest decline since the Great Depression.Following the pandemic, the Fed announced 9 emergency lending programs to keep the loan flow going and Congress approved $ 3 trillion in support for assistance.