March 1, 2017 / 7:08 PM / in 9 months

Fed's Kaplan says should raise rates soon so hikes can be gradual

DALLAS (Reuters) - Dallas Federal Reserve Bank President Robert Kaplan repeated his view that the Fed should raise rates sooner rather than later so that rate hikes can be slow and gradual.

“We should begin the process sooner so we can ensure that it is gradual and patient,” Kaplan said at an event at Paul Quinn College in Dallas. “My fear is if you get a situation where inflation starts to heat up and you overshoot employment, we might be in a position at the Fed where we have to raise very dramatically which history has shown tends to create recessions and cause job growth to be weaker.”

Kaplan is a voting member this year of the Fed’s policy-setting panel.

Reporting by Lisa Maria Garza; reporting by Ann Saphir; Editing by Chizu Nomiyama

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