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The US labor market is weakening, says Kaplan of the Fed

The expected upturn in this quarter is “more muted” than expected, and as a result, unemployment is likely to be higher this year than previously assumed, Dallas President Robert Kaplan said Monday.

“I think we have a resurgence, but it’s much softer than it was,” said Kaplan in an interview on Bloomberg Television.

He said he now expects an unemployment rate of 9-10% by the end of the year. That is higher than his previous forecast of 8% year-end unemployment.

The labor department will publish the July employment report on Friday morning. Economists are concerned that the strong pace of job growth over the past two months may have faded last month.

Kaplan is a voting member of the Fed’s interest committee this year.