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Federal Reserve Bank of Dallas President Robert Kaplan expects the Fed to raise interest rates twice more this year, MarketWatch staffer Rachel Koning Beals reports. But next year, he forecasts the central bank to slow the pace of rate increases if the moderating growth he expects materializes.

"2018 will be a relatively solid year for GDP growth," Kaplan said in a Bloomberg TV interview from Beijing. In 2019 and 2020, "I think you'll see growth moderating and so for me, the path of rate increases is likely a little bit flatter," he said.

Weaker labor force growth, sluggish productivity and high levels of government debt are among the factors that could hold back the economy in coming years, he said in the Bloomberg interview.

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