FX.co ★ Robert Kaplan urges Fed to begin bond tapering in October

Dallas Fed President Robert Kaplan said on Wednesday that the Federal Reserve should announce its plans on the bond purchase program next month, and then begin tapering in October. "It would be my view that if the economy unfolds the way I expect, I would be in favor of announcing a plan at the September meeting and begin tapering in October," Kaplan said.

He also noted that there are a number of opinions on the potential rate hike, but disclosed that he believes that a $ 120billion monthly bond purchases will not help the economy. He said excessive risk, high house prices, surplus and imbalances in the economy require immediate action.

As such, Kaplan stressed that he would like the bond tapering to take about eight months, explaining that such will help the Fed be more flexible regarding monetary policy.

In any case, US consumers are now more aware of inflation levels, just like Fed officials who need to keep a close eye on it when making decisions.

Meanwhile, Atlanta Fed President Raphael Bostic mentioned that the past quarantine exacerbated the economic inequality that existed before the crisis. He said it caused massive job losses among women, black workers and rural residents.

There is a larger decline among women than men partly because there are more female workers in the service sector. In addition, dark-skinned workers may face slower job recovery due to long-standing racial differences in employment.