Fed’s Kaplan: Base case should be three hikes this year

Reuters reports comments from the Dallas Fed President Robert Kaplan, delivered in an interview with the Wall Street Journal (WSJ).

Key Headlines:

Base case should be three hikes this year.

The economy is going to be strong in 2018.

The stronger expansion, fiscal stimulus should support the case for rate hikes.

Strong conviction for three hikes this year.

If wrong, could potentially be more than that.

An inverted yield curve is something worth worrying about.

Doesn't think the Fed's tightening path will lead to an inverted yield curve.

Best is to move gradually but deliberately remove accommodation.