KEY POINTS
  • Dallas Fed President Robert Kaplan said the central bank ought to increase interest rates at least three times in 2018.
  • He also raised his projection for economic growth but said rate hikes are central to making sure that doesn't get out of hand.
Robert Kaplan, president of the U.S. Federal Reserve Bank of Dallas

The unemployment rate in the U.S. is on its way to below 4 percent, a level that Dallas Fed President Robert Kaplan believes is an "overshoot" of full employment and a potential danger sign for the economy.

Consequently, he thinks the central bank ought to keep raising rates, at least three times this year, as a way to stop the economy from overheating.