Federal Reserve Bank of Dallas President Rob Kaplan said Wednesday he would support a rate hike.

"I would advocate that we take action to remove some amounts of accommodation," Kaplan told  the Economic Club of New York, according to prepared text released by the Fed.

When he has called for monetary policy normalization in the past, Kaplan said, "there is a cost to excessive accommodation in terms of penalizing savers, as well as creating potential distortions and imbalances in asset allocation, investing, hiring and other business decisions. These imbalances are often easier to recognize in hindsight and can be very painful to address."

He said we are making good progress toward the full employment goal, although "in a more interconnected world, labor slack should be assessed in a global context. Excess capacity outside the U.S. may be dampening inflation pressures in the U.S."

Some capacity remains for "job growth without overheating the economy or unduly stressing the capacity of the U.S. workforce," Kaplan said.

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