Two or three rate hikes this year would be appropriate according to Federal Reserve Bank of Dallas President Robert Kaplan and Federal Reserve Bank of Chicago President Charles Evans, while Federal Reserve Bank of Richmond President Jeffrey M. Lacker rates may have to be raised "more briskly than markets currently anticipate," a view shared by Cleveland Fed President Loretta Mester.
Kaplan spoke about gradual hikes during an appearance on Bloomberg TV Friday. "I think we should be removing accommodation. I think a higher federal funds rate in 2017 is going to be more appropriate and the thing we're going to be debating as this year goes on is the rate at which we should be removing accommodation."
He said he agrees with the summary of economic projections' forecast of two or three rate hikes this year.
Two increases this year would not be "unreasonable," and three would not be "implausible," Evans told reporters after an appearance at the American Economic Association conference.
In prepared text of a speech delivered by Kartik Athreya, Richmond Fed executive vice president and director of research, Lacker wrote, "With inflation nearing 2 percent and unemployment low, interest rate benchmarks suggest the Fed's current interest rate target is exceptionally low. Raising rates more briskly than markets currently anticipate may be necessary to restrain inflation pressures."
It would "probably" be appropriate to raise rates more than three times in 2017, Mester said in an interview on Fox Business.
