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Fed's Kaplan says he has no problem with being 'restrictive'


(Reuters) - Dallas Federal Reserve on Monday said he expects the U.S. to raise three times this year and further next year to levels that could put the brakes on U.S. economic growth, but that he does not want to push short-term rates above long-term borrowing costs.

"I don't have a problem with being restrictive," Kaplan said, adding that would be restrictive if rise above the 2.5 percent or 2.75 percent that he estimates is their "neutral" level. But, he said, he would not want rate hikes to proceed so fast or far that the inverts. The yield on the 10-year Treasury, currently around 2.85 percent, rises higher, acts to "limit the pace and the slope of how fast we can raise rates."

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 23:37 IST