Fed's Kaplan sees 'upside' to his 5% U.S. growth forecast

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco, U.S., October 11, 2019. REUTERS/Ann Saphir

(Reuters) – Dallas Federal Reserve President Robert Kaplan repeated on Monday his forecast that the U.S. economy will grow at about a 5% pace this year, but said he could well be underestimating the post-pandemic recovery.

Americans will “gradually” engage more fully in the economy between now and June as vaccines are rolled out, Kaplan predicted in an International Energy Forum, and that engagement will increase substantially in the second half of the year. Risks to the forecast are to the “upside,” he said.

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