UNITED STATES — The U.S. Federal Reserve should continue raising interest rates at least two but probably three more times before assessing whether further rate hikes to restrain growth are warranted, Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday, reported Reuters.
“My base case for 2019 is to gradually and patiently raise the federal funds rate into a range of 2.5 to 2.75 percent or, more likely, into a range of 2.75 to 3 percent,” Kaplan said in an essay outlining policy views.
The Fed last month raised its target range for short-term interest rates to 2 pct to 2.25 percent, a move Kaplan said he supported. Three more rate hikes would lift rates to 2.75 percent to 3 percent; any higher would move monetary policy from a “neutral” stance to a “restrictive” one, he said, slowing economic growth, pushing up on unemployment, and pushing down on inflation.
Read the full article at Reuters.