Hoenig says interest rate hikes are necessary for a stable economy

Thomas Hoenig, the chief of the Federal Reserve Bank of Kansas City has come out in open opposition to the current QE2 and to the ultra low interest rate which robs money from depositors and sends investors overseas in search of yield. 

He spoke at a Realtors Conference.  Many of the other Federal Reserve Presidents were at Jekyll Island, Georgia to review Federal Reserve policy.  Hoenig has offered up his opinions at the National Association of Realtors conference in New Orleans.  Via KC Fed:
I believe that moving rates modestly off of zero, where they have been since December 2008, still represents highly accommodative monetary policy.

More importantly, such action is necessary if we are to ensure a more stable economy that can thereby foster a more sustainable housing market.


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