Fed's Kaplan: US economy to have significant, historic contraction in Q2

"The US economy will have a significant, historic contraction in the second quarter and we may have reached the peak of unemployment," Dallas Federal Reserve Bank President Robert Kaplan said on Monday.

Additional takeaways

"Most forces will be disinflationary over the next couple of years despite the short-term rise in food prices."

"The economy will start to rebound in the second half of the year but unemployment will remain elevated at the end of the year near 8%."

"Concerned about yield curve control but wouldn't rule it out, it's something the Federal Reserve should look at."

Market reaction

The US Dollar Index largely ignored these comments and was last seen staying flat on the day at 97.08.