“Fed’s Hoenig: Fed Needs To Increase Key Rates, Normalize Policy”
“The Federal Reserve’s vocal dissenter stood his ground against ultraloose monetary policy Friday in a week that the Fed opened the floodgate to loose additional dollars into the system.
Federal Reserve Bank of Kansas City President Thomas Hoenig on Friday said the Fed needs to move rates “off of zero” to ensure a more stable economy; in the past, Hoenig has said rates of 1% or even 2% would still represent highly accommodative policy.
Hoenig spoke at a New Orleans conference of the National Association of Realtors. In prepared remarks, he said the boom-and-bust nature of the housing markets in recent decades needs to be addressed by weaning the market from “governmental intervention and public subsidies that have distorted the market.”
“The American public, including aspiring homeowners and those of you employed in the housing industry might be best served, over time, by reducing or removing these subsidies as part of our national policy,” he said.” Read more.
“Fed’s Hoenig: Fed Needs To Increase Key Rates, Normalize Policy”
Bradly Davis
Wall Street Journal, November 5, 2010.
