Fed’s Kaplan: 3 US rate hikes this year 'reasonable' baseline case

Reuters reporting headlines from Dallas Fed President Robert Kaplan, commenting on the Fed’s interest rates outlook for this year.

Key Points:

US well-served by March interest rate hike

3 US rate hikes this year 'reasonable' baseline case

Fed is still accommodative, as is appropriate

Removing accommodation should be done gradually, patiently

Sees 'a bit further to go' on rate hikes before it's time to allow fed's balance sheet to shrink

Wants to manage balance sheet run off to avoid unduly affecting financial markets

Fed should trim balance sheet gradually

Fed should keep reduction of portfolio at 'manageable' percent of daily volume in treasuries, MBS

Watching how Obamacare repeal unfolds, could impact consumers' willingness to spend

Could have brief periods where inflation runs above fed's 2-percent goal

Nothing in Fed statement that was intended to convey new information on inflation