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 (Oct. 24).

“My base case for 2019 is to gradually and patiently raise the federal funds rate into a range of 2.5% to 2.75% or, more likely, into a range of 2.75% to 3%,” Kaplan said in an essay outlining policy views.

Reuters reported that the Fed last month raised its target range for short-term interest rates to 2% to 2.25%, a move Kaplan said he supported. Three more rate hikes would lift rates to 2.75% to 3%. 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.

The Fed next meets in November, but is expected to defer any further rate increase until December, with most Fed policymakers expecting rates to rise three more times next year.

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