During his speech in Florida, Fed President for Dallas, Robert Kaplan said he was worried about fiscal stimulus, and if taxes remain at the current levels, it will become a serious problem in the next 3 to 5 years.
Here are the highlights of his speech, which directly affect USD and US stock markets:
- We can not reduce immigration and expect to increase the workforce and GDP.
- Inflation will rise, but I expect pressure on wage growth.
- With regard to interest rates, I think three increases are more than enough, given the high yield on bonds.
The speech did not have a strong impact on the USD, but it also supports and adds to the poor foundations surrounding Donald Trump's controversial policies and Donald Trump's own solutions.
Meanwhile, the "USD/CAD D1 Short" remains the best deal at the moment.
Source: Bloomberg Pro Terminal
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