Fed’s Kaplan: 3 rate hikes in 2017 is appropriate

Dallas Fed President Robert Kaplan crossed the wires, via Reuters, arguing that two more rate hikes seem prudent this year and that the Fed should begin shrinking its balance sheet later in the year.

Key quotes (via Reuters):

• Three interest-rate hikes in 2017 'appropriate'
• Need to be 'patient' in assessing inflation data
• Fed rate hikes should be gradual, patient
• Calls for reductions in Fed's balance sheet to start later this year