Fed's Kaplan says can raise rates in gradual, patient manner

DALLAS, Jan 18 (Reuters) - With the U.S. economy nearing full employment and inflation making progress toward the Federal Reserve's 2 percent goal, the U.S. central bank should be able to raise rates "in a gradual and patient manner," Dallas Fed President Robert Kaplan said on Wednesday.

Economic policies under discussion by the incoming Trump administration provide "upside" risk to the growth forecast, Kaplan told reporters after a talk, adding that while he views three rate hikes this year as a pretty good guess, "we'll have a debate about the pace" of rate hikes as the year goes on.

(Reporting by Lisa Maria Garza; writing by Ann Saphir; Editing by Chizu Nomiyama)

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