Fed's Kaplan: Fed's inflation objective is still 2%, even under new framework

"I would not want to see the Federal Reserve taking actions that get in the way of the treasury market," Dallas Federal Reserve President Robert Kaplan said on Friday, as reported by Reuters.

Additional takeaways

"Once the pandemic is weathered and we see progress on employment and inflation, I will advocate for QE taper."

"In financial markets, I'm more concerned about what I'm not seeing than what I see."

"The Fed's inflation objective is still 2%, even under the new framework."

"I'm going to want to see outcomes but I'm still going to use forecasting."

Market reaction

Market participants don't seem to be paying any mind to these comments. As of writing, the US Dollar Index was up 0.17% on the day at 92.22.