Fed's Kaplan warns of unemployment 'overshoot' that could lead to a recession

Robert Kaplan, president of the U.S. Federal Reserve Bank of Dallas

Michael Nagle | Bloomberg | Getty Images

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

“I have more conviction that we’re going to get down into the 3s in terms of headline unemployment. We’re going to overshoot full employment,” Kaplan said CNBC’s “Squawk Box” in a…

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