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The expected rebound this quarter “is more muted” than expected and, as a result, the unemployment rate this year will likely be higher than previously thought, said Dallas Fed President Robert Kaplan on Monday.
“I think we’ve got a rebound, but it is much more muted than it was,” Kaplan said in an interview on Bloomberg Television.
He said he now expected an unemployment rate in a range of 9%-10% at the end of the year. That’s up from his earlier forecast of 8% year-end unemployment rate.
The Labor Department will release the July employment report on Friday morning. Economists are worried that the strong pace of job growth seen over the past two months may have faded last month.
Kaplan is a voting member of the Fed’s interest-rate committee this year.
