U.S. Markets

Fed's Kaplan says he's open-minded to fourth 2018 rate hike

SAN FRANCISCO (Reuters) - Dallas Federal Reserve Bank President Robert Kaplan on Friday said he would be open to raising the Fed’s target policy rate a fourth time late this year, but his base case is for just three.

“I’m very open-minded about, when we get to the Fall, being open to a fourth; I don’t think there’s a magic to whether it’s three or four, I think the key is that we are gradually moving toward a neutral stance,” Kaplan told reporters after a talk here. “On the margin I’m very mindful of the fact that part of the strength of the economy in 2018 is fiscal stimulus and I’m also mindful that we expect that’s going to fade to some extent in ‘19 and further in ‘20.”

Reporting by Ann Saphir; Editing by Chizu Nomiyama