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Fed 'very sensitive' to strength of the dollar, Dallas Fed's Kaplan says

Robert Kaplan, president and chief executive officer of the Federal Reserve Bank of Dallas
Elizabeth Schulze | CNBC
Robert Kaplan, president and chief executive officer of the Federal Reserve Bank of Dallas

The Federal Reserve is "very sensitive" to the strength of the dollar, a top Fed official said on Wednesday, because even though manufacturing and exports have declined as a share of U.S. gross domestic product, they have ripple effects through the economy.

Dallas Fed President Robert Kaplan said he expects GDP growth of 2 percent, which is "slow." Boosting growth he said is the most important issue at this point even though doing so requires structural reforms that are not within the Fed's purview.