June 26, 2018 / 6:56 PM / 5 months ago

Fed's Kaplan says policy is still accommodative

FILE PHOTO: Dallas Federal Reserve Bank President, Robert Kaplan, stands on a stage at Stanford UniversityÕs Hoover Institution where he is attending an annual monetary policy conference in Stanford, California, U.S., May 4, 2018. REUTERS/Ann Saphir

HOUSTON (Reuters) - Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday he believes the U.S. central bank’s monetary policy is still accommodative and suggested the Fed could raise rates at least two more times before it stops being accommodative.

The Fed earlier this month raised its target range for short-term borrowing costs to 1.75 percent to 2 percent, and Kaplan repeated his view that the neutral rate, where Fed policy will no longer be stimulating the economy, is around 2.5 percent to 2.75 percent.

“The Fed is still accommodative, in my opinion, as we sit here today,” Kaplan told reporters after a talk.

Reporting by Collin Eaton, writing by Ann Saphir; Editing by Chizu Nomiyama and Marguerita Choy

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