Raising interest rates now gives the U.S. the best chance to keep pushing the economy forward, Dallas Fed President Robert Kaplan said Tuesday.
In that light, Kaplan said he favors three rate hikes this year, a sentiment reflected in markets that nevertheless have been wary that the central bank may get more aggressive should the improving economy start generating more noticeable inflation.
"It's three for this year. I think we should get started sooner rather than later, though," he said during an interview on CNBC's "Squawk Box."
A March rate hike is nearly a certainty judging by trading in the fed funds futures market. A subsequent hike is expected in June, with a third likely coming in September, according to the CME's FedWatch tracker.
Whether the Fed goes for a fourth move is still in doubt, though it currently has about a 1 in 3 shot. Fears of a more aggressive central bank have helped roil a market that had been showing an extraordinarily low level of volatility prior to 2018.