Fed’s Kaplan says three rate hikes in 2018 ‘reasonable’

By Ann Saphir

VANCOUVER (Reuters) – Dallas Federal Reserve Bank President Robert Kaplan said on Thursday that three U.S. interest-rate increases in 2018 is a “reasonable” base case, pushing back against the notion, floated by some on Wall Street, that more rate hikes may be needed.

With the Fed likely to overshoot on its goal of full employment, and with progress toward the Fed’s 2-percent inflation goal expected this year, the U.S. central bank should move patiently, gradually and deliberately to raise rates, Kaplan told the Vancouver Board of Trade. “It is wise then to take back some of this accommodation, some of this stimulus,” he said.

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