Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

In-depth Article On Thomas Hoenig - The Lone Dissenter At The Fed

Saturday, September 25, 2010 - 12:00 PM
This BusinessWeek article is an excellent in-depth look at Thomas Hoenig, the chief executive of the Federal Reserve Bank of Kansas City and a voting member of the FOMC. He has been the lone dissenter of the Fed's monetary policy this year.

The article provides some insights into why he has been dissenting. Many economists think he's way off on this, but I'm glad he hasn't been the typical follower at the Fed. Here are a couple of excerpts from the article that help explain his votes:
he argues that it's not primarily inflation he fears but the reckless borrowing and distortions engendered by sustained low interest rates.

[....]

"It's a distortion, and it favors the large institutions over the smaller ones and Wall Street over the saver," Hoenig says in an interview. "I just don't like it. It's not fair."

3
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
Reply