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Fed's Kaplan sees 2 more rate hikes in 2017

Dallas Federal Reserve President Robert Kaplan expects the Fed to begin reducing its balance sheet and raise interest rates two more times in 2017.

In an interview with CNBC on May 30, Kaplan, a voting member of the Federal Open Market Committee, added that the Fed should reduce its $4.5 trillion balance sheet gradually and patiently.

Kaplan's outlook is unchanged from his previous statements at a question-and-answer session in Toronto on May 24.