Fed's Kaplan: Monetary policy cannot be the only game in town

Dallas Fed President Robert Kaplan on Friday argued that economies need a broader menu of other policy tools than just monetary policy. "The monetary policy cannot be the only game in town, negative rates would be a case of the central bank trying to do too much," Kaplan added.

Regarding the economic outlook, Kaplan said that he was expecting the economy to expand by 2% in 2019 and around 1.7% in the second half of the year. 

The US Dollar Index largely ignored these comments and was last up 0.16% on the day at 98.52.

"My concern is that that weakness may seep into other parts of the U.S. economy, so that ultimately over the next several months, that weakness intensifies, and will ultimately catch up with the job markets, and will ultimately catch up and diminish consumer confidence, and maybe affect consumer behaviour," Kaplan further elaborated, as reported by Reuters.