Thursday, January 7, 2010 - 2:07 PM

Fed's Hoenig says mustn't wait too long to tighten [Reuters]

Reuters reported on a speech by Kansas City President Thomas Hoenig who'll be a voting member of the Fed this year. He's an inflation hawk who's pushing for higher rates sooner rather than later:

Maintaining excessively low interest rates for a lengthy period runs the risk of creating new kinds of asset misallocations, more volatile and higher long-run inflation, and more unemployment -- not today, perhaps, but in the medium and longer run

KenBDG5,178 posts since
Nov 29, 2009
Rep Points: 117,676

1. Thursday, January 7, 2010 - 4:46 PM

I'm sure "Helicopter Ben" Bernanke is really going to listen to Mr. Hoenig. LOL. Bernanke is bound and determined to hold rates at near zero for as long as he can pull it off, no matter the consequences. Goldman Sachs and JP Morgan are depending on it to continue the profitable carry trade.

Anonymous2,211 posts since
May 9, 2010
Rep Points: 3,219