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The US Federal Reserve has to raise interest rates at least two, and preferably three times, before assessing whether further increases will curb growth, according to the president of the Federal Reserve Bank of Dallas, Robert Steven Kaplan.

“For 2019, I think we should gradually and patiently raise interest rates to a range of 2.50-2.75% or, more likely, to 2.75-3.00%”, said Robert Steven Kaplan, outlining its political positions.

Last month, the Fed raised its target range for short-term interest rates to a range of 2.00-2.25% – a move that Kaplan supported. Three more increases will raise interest rates to 2.75-3.00%. According to Kaplan, higher than these levels will turn monetary policy from “neutral” to “restrictive”, which will slow down economic growth, speed up unemployment and slow inflation.

“I intend to avoid prejudging what, if any, further actions we should take once we get into the range of our best estimate of a neutral stance. I intend to make that judgment sometime in the spring or summer of 2019 based on the economic outlook at that time”, said Robert Steven Kaplan.

The next Fed meeting is in November, but the central bank is expected not to raise rates before December. Most central bankers expect three more interest rate hikes next year.

For Kaplan, the prospect of fiscal stimulus, which supported the economic growth in the US this year, to weaken next year makes him hesitate to have more than two interest rate hikes in 2019 without further economic data available.