FX.co ★ Fed’s policymaker to push for raising interest rates

Dallas Federal Reserve President Robert Kaplan said he will back gradual increase in the Fed’s benchmark interest rate as inflation continues to rise and the US economy remains near full employment.
The Fed’s main goals are maximum employment and stable inflation. This week the regulator left interest rates unchanged as despite improving labor market situation, there is slowing economic activity in the United States.
Forecasts unveiled last month showed that 16 out of the Fed’s 17 policymakers agreed with the decision to raise rates at least twice this year. Meanwhile, traders are anticipating only one interest rate increase by the end of the year.
Robert Kaplan expects US GDP growth at 2% this year, slightly higher than he forecasted in April.
He believes US employers can continue to generate new jobs without overheating the economy as oversupply of labor force puts downward pressure on inflation.
The president of the Federal Reserve Bank of Dallas also said that inflation that has been below the Fed's 2% target for years will return to this level in the medium term as the downward pressure from the strong US dollar and cheap oil is weakening.